In certain situations, additional unwanted material events (UMEs)

linked to severe financial loss or business disruption to an

organization may also be included in critical risks, which focus on

preventing major injuries and fatalities.

Although low probability extreme consequence events are almost

always identified through a structured process and updated into

the organization's Risk Register where controls are identified, these

low probability extreme consequence events are frequently not

treated any differently from a disciplined Risk Management

perspective. Until the event occurs, these occurrences typically

don't pose a problem. Early warning indications and control

vulnerabilities typically go undetected in the absence of an efficient

and well-managed Critical Risk Management system.

Effective Lead Indicators, multi-layered Control Effectiveness tests

carried out by employees at all organizational levels, and a

scheduled auditing and reporting process that focuses solely on

the Critical Risk and the identified Critical Controls are all features

of properly designed Critical Risk Management programs. As a

visual depiction of each Critical Risk and Control's performance,

dashboards are built up.

The right framework must first be built in order to construct an

effective and efficient Critical Risk Management system. The

following issues need to be considered by the framework:

•The organization's size,

•The organization's size,
•operating environment,
•The current risk management framework,
•The organization's present safety environment,
•Present policies and controls
 In certain situations, additional unwanted material events (UMEs) linked

to severe financial loss or business disruption to an organization may also

be included in critical risks, which focus on preventing major injuries and

fatalities.

Although low probability extreme consequence events are almost always

identified through a structured process and updated into the

organization's Risk Register where controls are identified, these low

probability extreme consequence events are frequently not treated any

differently from a disciplined Risk Management perspective. Until the

event occurs, these occurrences typically don't pose a problem. Early

warning indications and control vulnerabilities typically go undetected in

the absence of an efficient and well-managed Critical Risk Management

system.

Effective Lead Indicators, multi-layered Control Effectiveness tests carried

out by employees at all organizational levels, and a scheduled auditing

and reporting process that focuses solely on the Critical Risk and the

identified Critical Controls are all features of properly designed Critical

Risk Management programs. As a visual depiction of each Critical Risk and

Control's performance, dashboards are built up.

The right framework must first be built in order to construct an effective

and efficient Critical Risk Management system. The following issues need

to be considered by the framework:

•The organization's size,

•The organization's size,
•operating environment,
•The current risk management framework,
•The organization's present safety environment,
•Present policies and controls