What is M_o_R®
Management of Risk (M_o_R) is a global management standard for risk management. It helps organizations realize their potential as well as their weaknesses. Thanks to its versatility, it is an internationally valid standard and a basic pillar in this area.
M_o_R Framework
M_o_R is a methodology for risk management. The standard includes Principles, Approaches and Processes aimed at effective identification, management and elimination of risks.
M_o_R Principles
This is a basic building block for a risk management system. The principles are derived from the principles of the M_o_R risk management framework.
M_o_R Approach
How to use the principles to suit managers and organizations? Risk management policies, processes and strategies.
M_o_R Processes
There are four main process steps that describe the inputs, outputs and activities associated with risk management.
Optimization and development ofM_o_R
How to effectively use the previous 3 topics to ensure continuous improvement of the risk management system?
Types of risks
Risk management: short-term, medium-term and long-term
Risk management is crucial especially where "critical" and "strategically important" decisions are made. The nature of the risk then differs in whether it relates to long-term, medium-term or short-term objectives.
The risks associated with strategic decisions may not materialize until the distant future. Therefore, it is necessary to regularly review risk decisions and related risks.
These risks depend on the goal. It is usually addressed through programs and projects that aim to implement some changes. Decisions on medium-term objectives are smaller than strategic, especially in terms of timeframe and financial responsibility.
They arise mainly at the operational level, where they emphasize short-term goals to ensure uninterrupted continuity; however, risk decision-making at this level must support the achievement of long- and medium-term goals.
Benefits of M_o_R
- M_o_R is fully compatible with PRINCE2, MSP, or ITIL. It helps organizations at the process, managerial and strategic levels better identify and respond more quickly to potential risks
- It improves the internal but also the external image of the company. Qualified managers working in an organization that knows its risks and better manages their management is also more competitive.
- Management of Risk can be easily and clearly integrated into the system of internal audits, internal controls, but also processes - such as project or program management.
Assesment
Risk management is used in strategic, program, project and operational management and decision-making. The way risk is managed varies depending on whether the risk relates to long-term, medium-term or short-term objectives.
▂ Low risks
They are most often at the operational level, with an emphasis on short-term goals. However, decisions about these risks often affect both medium and large risks.
▂ ▃ Medium risks
They most often influence medium-term goals at the level of projects or programs. In terms of time or financial demands, they have lower impacts than large risks. Their importance is important, but not strategic.
▂ ▃ ▅ Significant risks
These are most often associated with strategic decisions. Their impact affects not only the current but especially the future. This is why we should address strategic risks continuously.
