Financial Risk Management Structure

The ‘a priori’ Risk Model shown in the Figure serves three key purposes: * it forms the basis of the risk-analysis activities defined by Arg 1 * it provides a source of suitable parameters / values for day-to-day monitoring of risk achievement * it provides the baseline for the risk assessment of proposed changes * it is the source of the Assurance Levels, which specify the rigour with which all risk assurance activities are carried, thus ensuring that the level confidence in the various items of Evidence is determined by, and appropriate to, the risk levels involved.