CIMA Official Learning System P3 — Performance Strategy （5）Risk and Risk Management

L EARNING O UTCOMES
After completing this chapter you should be able to:
? Discuss ways of identifying, measuring and assessing the types of risk facing an
organisation, including the organisation’s ability to bear such risks.
? Evaluate risks facing an organisation.
? Discuss the purposes and importance of risk management for an organisation.
? Evaluate risk management strategies.
5.1 Introduction
The main purpose of this chapter is to defi ne risk and identify different types of risk and
to look at risk from a variety of perspectives. The chapter then looks at risk management
in detail through its architecture, strategy and the risk management process which includes
risk assessment, reporting and treatment.
This is a long chapter but it contains a great deal of data about the entire risk manage-
ment process, together with a number of case studies. It is focused primarily on section B
of the Performance Strategy syllabus but the principles of risk management apply through
Part D (Financial Risk) and Part E (Information Systems Risk). As risk management is at
the core of the syllabus for Performance Strategy, students will be expected to be able to
apply the concepts in this chapter to any area of risk.