Create a risk event

Create a risk event entry to determine the monetary or non-monetary impact of the risk event. A risk event can have multiple risk event entries.

Before you begin

Role required: sn_risk.manager

About this task

Risk event entries capture the direct and indirect losses reported due to the risk event.

Procedure

1. Navigate to All > Risk Events > All Events.
2. Select New.
3. On the form, fill in the fields.

   Table 1. Risk Event form

   Field	Description
   Name	Unique name of the risk event. For example, Unauthorized access to customer data.
   Number	Record number for the event entry. This field value is automatically set.
   Discovered by	Individual or group identified the risk event.
   Opened by
   Primary entity
   Owning group
   Owner
   State
   Substate
   Risk event	Title of the risk event. This field value is automatically set.
   Date of impact	Date that the impact was recorded. Note: The date of discovery and the date of first recognition can be different. This date cannot be a future date.
   Amount	Amount that the impact costs. The amount entered is reflected in the Summary related list.
   Rapid recovery	Loss amount for this entry if it's recovered in a short time, which is generally five working days.
   Impact type	Type of financial impact for the event. Select from the following types: Direct/Indirect Impact: Direct or indirect financial impact of the event on the entity. Recovery: Amount recovered from the total financial impact. Additional Cost: The additional cost incurred due to the impact. Non-Financial Impact: The event has no financial impact.
   Category	Direct or Indirect. For example, if the impact is direct, is it external?
   Sub category	Sub category of the event impact. Select one of the following categories: External Cost: The cost that's incurred for external agencies. For example, if a loss is incurred due to erroneous accounting and an external auditor was hired to assess the event, the cost incurred in employing the auditor is an external cost. General Ledger: The book of accounts in which this event is entered. Booked Provision: Refers to the amount that you set aside in your accounts to cover a future event. For example, if a firm sets aside an amount to cover a risk event that might occur in the future. Revenue Reversal/Timing Losses: When you reverse revenue, a reverse entry is created that backs out the original entry. Don't enter any new accounting information into the system.
   GL account reference	Account number in which this entry is captured in the ERP system.
   Short description	Brief description of the impact.

4. Select Submit.

What to do next

Create or edit a new risk

Creating or editing a new risk for an event is useful for future prediction of risks. The information obtained from the risks is useful for scoring and reporting. For more information, see Create a risk manually.

Link new control to risks

A control is used to prevent a risk from occurring. Linking the controls to risks lets users know which controls failed and why the risk event occurred. This information can be used for future predictions and reporting.

Note:

Only those risks and controls that are tagged to the impacted entity can be related to this risk event.

For more information, see Create a control.