What Is a Risk Graph?

A risk map is an operational risk management tool that uses graphic technology to represent the identified risk information and visually shows the development trend of the risk, which is convenient for risk managers to consider what risk control measures to take. With the support of risk management information systems.

Risk map

Right!

Risk map is a kind of graphical technology to represent the identified risk information and to visually show the development of risk

The horizontal axis of the risk map represents the frequency of risk occurrence, and the vertical axis represents the intensity of risk occurrence. The points in the figure come from different business lines and represent different types of risks, such as corporate financial services and retail banking.

This graph can be divided into four quadrants, of which the expected loss in the upper right is "high frequency, high intensity", and the risk situation is very serious, which should be taken seriously by management and strive to avoid; for the "low frequency, high intensity" The risk situation should be vigilant and pay attention to risk transfer; for "high-frequency, low-intensity" risk events, active management should be carried out to reduce the risk; as for "low-frequency, low-intensity" risks, as a daily management risk Some are often included in the scope of cost control, see the figure on the right. ^[1]

At the end of May 2014, the risk map of the image crisis of the mainland provinces that caused a lot of public debate in China was first publicized in a special form on Xinhua News Agency through China Net. The "risk map" is the research result of the Blue Book "Image Crisis Response Research Report 2013-2014" of the Chinese Academy of Social Sciences. A paper version of the report will be available on the 18th. ^[2]

"Risk Map" is based on the statistics of 2,074 typical cases reported publicly in 2013. It summarizes the image crises faced by mainland provinces as "critical" public safety, "disorderly" social order, "dirty" ecological environment, and "difficult" public services. The five major areas of "poor" official quality cover 55 risk items in 24 risk sectors. ^[2]

The report conducted a statistical study on the overall image crisis of each province according to the principle of territoriality, and announced the ranking at the end of May. Guangdong, Beijing, Henan, Shaanxi, Jiangsu, Zhejiang, Hunan, Shandong, Hainan, and Anhui ranked among the top ten in the "most crisis" and caused widespread concern.

Through ChinaNet.com, it disclosed the ranking of the crisis in each of the five major risk areas of difficulty and hardship. The "risk map" clearly pointed out the dominant elements of social risks in the transition period. The purpose is to draw attention to the dilemma of social governance in various places. Through risk management, error correction, and scientific treatment, social governance with long-term stability and people's satisfaction is truly formed. ^[2]