September 2007

This special issue of The Risk Report is to launch and outline the key elements of the new RiskOrganizer version 6.0.

These exciting developments will help to make risk management in your business easier.

News

Over the last nine months we have undertaken a substantial upgrade to our flagship tool RiskOrganizer. Some of the key changes are outlined in this letter.

The screen layouts are now based on tabs so that moving between data entry, filters and reports may readily undertaken.

Switching between projects is also easier.

As with previous versions, we have maintained a single screen for workshop data entry so that participants quickly find they are focusing on the data rather than the tool.

Version 6.0 also has the ability to value the cost of risks and undertake Hazard and Operability studies (HAZOP). Both processes use the same screen layout with minor changes to accommodate the specific requirements of these processes.

Reporting has also been extended with more management reports.

Version 6.0 also comes with an online help function.

Find out more at www.risktools.com.au .

Value your risks

Version 6.0 now has a facility to assess the cost of risks. This uses a Monte Carlo simulation to assess the most likely total value of the identified risks.

After identifying risks those with a direct cost impact may be highlighted.

The value of the cost of each risk is then assessed (using best case, most likely and worst case values). Once this is completed a  simulation may be readily run.

Outputs include a detailed report of the data used and a histogram of the outputs. In particular the most likely 50% and 90% values are highlighted.

Contractors have found the 50% value to be a useful assessment of contingency when compiling a tender.

Asset owners are attracted to using the 90% value for board approval (so they do not have to go back to the board for more approvals). They use the 90% - 50% value as a management reserve.

Integration

1. It enables a risk breakdown structure (RBS) to be readily developed using a tree structure. The RBS may be used for risk management at any level from project through to strategic management. Adopting a consistent framework across an enterprise is an important aspect of integration.
2. The fourth level of the RBS supports open-ended questions that may be used for lessons learnt, thereby integrating these lessons from one project to the next.
3. Special risk management processes may now be undertaken using the same tool. RiskOrganizer is particularly useful when performing HAZOP analysis and assessing the cost of risks. This means that the processes and reports are aligned and use the same user-friendly tool. Ease of use supports the cultural change needed to ensure new processes are adopted.
4. New reports continue to support the reporting of risks and reporting on the risk management process. Reports may be managed and dissected to suit reporting needs at a project or program level, by group or individual manager level and through the RBS. The ability to “cut and dice” the information for tailored reports is a key input to the successful integration of risk management.

To find out more about how RiskTools can help your business, visit www.risktools.com.au or contact us at support@risktools.com.au