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Managing risks at different organisational levels

Modelling organisational hierarchy in risk management

Aki Laakkonen avatar
Written by Aki Laakkonen
Updated over a year ago

Risks at different levels

Depending on which risks are assessed, some of the risks are related to different levels in the organization's hierarchy. Falcony makes it possible to link risks to the right place in your organization.

Organizational level, departmental level, unit level

In order for the risks to be monitored by the right responsible parties, all risks are linked to a place. This can be a cost center, department, unit, division, management team or the entire organization. In this way, it is possible to monitor risks at the right levels.

Creating places in Falcony

In Falcony, the organizational hierarchy is always modeled starting from the lowest level, at which risks are evaluated all the way up to the entire organizational level. The places are created as part of the implementation, but it is possible to update them anytime by the admin users and also through the API interface automatically when the organizational hierarchy is updated.

Risk escalation to the organizational level

Sometimes a critical risk is identified at the cost center level, but when its effects are catastrophic, it should be escalated to the organizational level. This is done through linked observations. The original identified risk still remains and will continue to be processed according to normal protocols. However, a separate organizational risk is then linked to the original risk, and the place of which is chosen as the organizational level (or why not also a unit or another level, depending on how high the risk must escalate).

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