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PO9.2 - Establishment of Risk Context

This topic is intended to enable collaboration and sharing of information to facilitate a better understanding and approach to implementing this COBIT control objective based on the risk, value and guidance provided by its corresponding control practices.

COBIT Control Objective PO9.2 - Establishment of Risk Context is contained within Process Popup Assess and Manage IT Risks.

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Establishment of Risk Context

Establish the context in which the risk assessment framework is applied to ensure appropriate outcomes. This should include determining the internal and external context of each risk assessment, the goal of the assessment, and the criteria against which risks are evaluated.

View value and Risk Drivers  help

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Value Drivers

  • Effective and efficient use of resources for management of risks
  • Alignment of risk management priorities to business needs
  • A focus on relevant and significant risks
  • Prioritisation of risks
  Risk Drivers
  • Irrelevant risks considered important
  • Significant risks not given appropriate attention
  • Inappropriate approach to risk assessment

View Control Practices  help

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  1. Evaluate risks qualitatively according to their impact (catastrophic, critical, marginal), probability (very likely, probable, improbable) and time frame (imminent, near term, far term), or quantitatively, when appropriate probability data exist.
  2. Prioritise risks by separating the ‘vital few’ from the rest and ranking them based upon a criterion or criteria established by the project team. Techniques for prioritisation include comparison risk ranking, multivoting, and paring to the top ‘n’ and top five.
  3. Perform risk assessment activities considering the context of the IT management processes that are affected.

 

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