Advanced Risk Assessment Setup

Introduction

Welcome to the How to Now series, where we cover features and functionality within the integrated risk management product suite. In this video, we will dive into how to set up advanced risk assessments in ServiceNow's risk management application.

Risk assessments are a key part of effective risk management and facilitate decision-making in organizations. They focus on identifying risks, analyzing their severity, and evaluating and prioritizing them accordingly.

Linda, a risk manager within Demo Incorporation, has been facing challenges with managing risk assessments in her organization. These challenges include manual processes, spread out risk assessment data, lack of accountability, varying risk assessment methodologies, and the inability to provide holistic reporting to senior management. Linda wants to transform the risk assessment process within her organization using the advanced risk assessment in ServiceNow. This will provide a single source of truth, a standardized and automated process, accountability and ownership of risks, risk aggregation across the organization, real-time monitoring of risks, and holistic reporting.

To complete advanced risk assessments in ServiceNow, a risk assessment methodology or RAM needs to be set up. Linda assigns Arjun as the risk admin to complete the RAM. The RAM allows risk admins to configure risk assessment templates by documenting what is being assessed and how it is assessed within the same instance. Multiple risk assessment methodologies can be configured.

Step 1: Define Assessment Context

The first step is to define the assessment context. There are two types of risk assessments that can be configured depending on their context: risk-based assessments and object-based assessments. In this case, Linda's organization will assess operational risks in the context of departments, so risk-based assessments are the appropriate type.

Step 2: Define Assessment Types

The second step is to define the assessment types. A RAM template can include a single assessment type or a combination of three available assessment types: inherent risk, control effectiveness, and residual risk. Each assessment type requires factors and scoring calculation logic to be configured.

Step 3: Define Assessment Preferences and Settings

The third step is to define assessment preferences and settings. This includes configuring reference information available to assessors, notifications to remind assessors, enabling risk response workflows, allowing override of results, and configuring risk identification options.

Step 4: Define Risk Rating Roll-Up Preferences

The final step is to define the risk rating roll-up preferences. This determines how risk scores are calculated across the risk statement hierarchy and entity hierarchies. The roll-ups provide visibility of the overall aggregated risk score.

By following these steps, Linda can set up advanced risk assessments in ServiceNow, providing a standardized and automated process, accountability and ownership of risks, risk aggregation, real-time monitoring, and holistic reporting.

Keywords

Advanced risk assessment, ServiceNow, risk management, risk assessments, risk manager, risk admin, risk assessment methodology, assessment context, assessment types, factors, scoring logic, assessment preferences, assessment settings, risk rating roll-up, standardized process, automated process, risk aggregation, real-time monitoring, holistic reporting.

FAQ

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