System and method for collaborative management of enterprise risk

A computer program product for mitigating risk comprising:

• a tangible storage medium readable by a processor and storing instructions for operation by the processor for performing a method comprising:
• developing a risk network comprising of risk nodes;
• analyzing a node in said risk network when an output of said node violates a control limit;
• updating said risk model to reflect an observed control limit violation;
• identifying, from said risk model, a source of said violation of said control limit;
• determining whether an existing risk factor influencing said source has changed;
• collaboratively performing a root cause analysis based on user feedback;
• updating said risk model to reflect new any updated risk factor and associated probability;
• evaluating consequences of changes on one or more performance metrics;
• analyzing the risk network and creating a mitigation action in response to changes in said one or more performance metrics;
• collaboratively setting parameters for said mitigation actions;
• performing said mitigation action, said mitigation action having an influence on said output of said node;
• and
• measuring said output of said node to determine effectiveness of said mitigation action on said node.

A system for mitigating risk, the system comprising a memory storage device and a processor unit in communication with said memory storage device, said processor unit operable to:

• develop a risk network comprising of risk nodes;
• analyze a node in said risk network when an output of said node violates a control limit,
• update said risk model to reflect an observed control limit violation;
• identify, from said risk model, a source of said violation of said control limit,
• determine whether an existing risk factor influencing said source has changed;
• collaboratively perform a root cause analysis based on user feedback;
• update said risk model to reflect new any updated risk factor and associated probability;
• evaluate consequences of changes on one or more performance metrics;
• analyze the risk network and create a mitigation action in response to changes in said one or more performance metrics,
• collaboratively set parameters for said mitigation actions;
• perform said mitigation action, said mitigation action having an influence on said output of said node, and measure said output of said node to determine effectiveness of said mitigation action on said node.