AWARENESS-BASED RISK MANAGEMENT ™ (ABRM)
Awareness-based risk management™ (ABRM) is a comprehensive process that drives a shift in an organization’s risk management perspective from one that is compliance-based to one that is based on resilience, positive impacts, and building a culture of health. The ABRM process emphasizes developing an awareness of the whole—a 360 perspective. Central to this process is gaining an understanding (awareness) of the following:
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- How risk is thought of, defined, assessed, managed, and controlled in the organization.
- The organization’s risk profile—the width, breadth, depth, as well as physical and non-physical elements of the risk profile. Physical elements include policies, procedures, and systems where as non-physical elements include mental models, culture, and communication.
- The risk management decision-making process.
- What is driving the decision-making process.
- The skills, methods, and structures that support innovation and leadership.
The ABRM process contains a Risk Awareness Matrix that defines the organization’s risk maturity and the risk realms that drive risk decision-making. This matrix establishes a framework and context for upgrading existing systems and measurement practices.
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