Risk Assessments
Identify, assess, and manage risks across your organization with Pestle's comprehensive risk management capabilities.
Risk Management Framework
Pestle implements a standard risk management lifecycle:
- Identify - Discover and document risks
- Assess - Evaluate likelihood and impact
- Treat - Apply mitigation controls
- Monitor - Track risk status over time
Risk Register
The central repository for all organizational risks. Access via Risk → Risk Register.
Adding a Risk
- Click New Risk
- Provide a clear, descriptive title
- Select the risk category (Operational, Financial, Compliance, Strategic, etc.)
- Describe the risk scenario and potential consequences
- Assign a risk owner
Risk Assessment Matrix
Pestle uses a 5x5 risk matrix to calculate risk scores:
| Likelihood | Description | Score |
|---|---|---|
| Rare | Unlikely to occur | 1 |
| Unlikely | Could occur but not expected | 2 |
| Possible | Might occur | 3 |
| Likely | Will probably occur | 4 |
| Almost Certain | Expected to occur | 5 |
| Impact | Description | Score |
|---|---|---|
| Negligible | Minimal impact | 1 |
| Minor | Limited impact, easily managed | 2 |
| Moderate | Noticeable impact, requires response | 3 |
| Major | Significant impact on operations | 4 |
| Catastrophic | Severe impact, threatens viability | 5 |
Risk Score = Likelihood × Impact
- Low (1-4): Accept or monitor
- Medium (5-9): Mitigate with controls
- High (10-16): Priority mitigation required
- Critical (17-25): Immediate action required
Risk Treatment
Four standard risk treatment options:
- Accept - Acknowledge and monitor without additional action
- Mitigate - Implement controls to reduce likelihood or impact
- Transfer - Shift risk to third party (insurance, outsourcing)
- Avoid - Eliminate the activity causing the risk
Linking Controls to Risks
Connect applied controls to the risks they mitigate:
- Open a risk from the Risk Register
- Navigate to the Controls tab
- Click Link Control
- Select existing controls or create new ones
- Specify how the control reduces risk (likelihood, impact, or both)
Risk Reporting
- Risk Heat Map - Visual representation of risk distribution
- Top Risks Report - Highest priority risks requiring attention
- Risk Trend Analysis - How risks change over time
- Treatment Progress - Status of risk mitigation activities
Scenarios and Analysis
Model risk scenarios to understand potential impacts:
- What-if analysis for different risk combinations
- Business impact assessment
- Control effectiveness modeling