1. Identification of Risk
Processes that could threaten WAT's strategies and assets are identified.
Workshops held with facility and department leaders, audit reports and experienced are taken as basis in the identification of risks.
Regular risk assessment ensure that events that may affect WAT's achievement of its goals and objectives are identified.
2. Prioritization
Measures that reduce the severity and probability of risks are recorded in an inventory, and the extent to which each measure decreases the severity and/or probability of the risk is calculated. For this calculation, a risk matrix is used, which includes both quantitative and qualitative descriptions of severity and probability levels.
The risks listed in the risk inventory are ranked by priority to allocate the appropriate amount of time and resources. When prioritizing risks, statistical calculations are used to identify potential financial risks that may be impacted.
3. Mitigation and Control
During risk mitigation, it is ensured that the actions identified are implemented. While determining the actions, one of the strategies of risk avoidance, risk mitigation, risk transfer or risk acceptance can be implemented. The completion status of these actions determined by the risk officers appointed by the directorates and subsidiaries and the update made by the completed actions on the level of risk are periodically updated in the risk inventory and the risk is monitored.
In addition, in order to select the right strategy for risk management, risk appetite is taken into consideration, which assists senior management in allocating resources and management time for material risks.
4. Monitoring
Risks and the control process are monitored by operational risk management leaders and the risk team.
The main objective of risk monitoring is to ensure that risks do not exceed the appetite level and to take early action to prevent them from doing so.
Monitoring usually includes tracking actions taken and monitoring Key Risk Indicators (KRIs).
Processes are carried out through an IT-based program to ensure efficient traceability.
5. Reporting
A communication network has been established to facilitate reporting on WAT's risk management at the appropriate level, and this structure continuously informs senior management on critical risks, the extent of these risks and their management.
