Overview

• Organizational risk is the degree of risk or uncertainty that is acceptable to an organization. The level of risk an organization is willing to accept in pursuit of strategic goals and objectives.

• Risk tolerance assessment is important for helping to determine potential issues surrounding an organization's business performance and long-term value; failure to identify and manage risks can leave an organization exposed to unnecessary issues. Determining risk tolerance helps an organization manage decisions and exposure according to established expectations.

• The following provides a summary of FOX Entertainment Technology's assessment and management of risk related to organizational security.

5 Factors of Risk Tolerance to Consider

1. Risk Attitude: Willingness to take risks. Risk averse, neutral or risk taker?
2. Organization Goals: Determining an organization's goals and how to direct its resources. Differing goals means different risk tolerances. Ex. Public vs. Private organizations.
3. Risk Management Capability: Ability to manage risk exposure within accepted risk tolerance.

   • Does org. understand risks?

   • Can org. measure risk?

   • Qualified people to manage risks?

   • Risk management practices?

   • Management environment support or impede management of risk?

4. Risk-taking Capacity: How an org. determines ability to assume impact of an adverse risk event. Consider financial impacts, losses, how the risk impacts overall org goal.
5. Cost & Benefit of Managing Risk: Benefit of managing each risk exposure must exceed the cost of doing so.

Risk Tolerance Diagram

Our Risk Tolerance Diagram illustrates how FOX ET / Production & Post Technology will consider and quantify the risk tolerances for the organization through the lens of Security, Performance, Cost, and Usability.

1. Security: What risks are associated with our orgs security and how do we determine what strategies / tolerances we have. This can include security of media, information, access, etc.

2. Performance: How does our risk tolerance align with our performance objectives? How do our performance objectives present challenges to our org and risk tolerances? Do we ask, analyze, and potentially recalibrate our performance to mitigate risk.

3. Cost: The financial obligations and risks associated with maintaining the orgs goals. What costs are associated with growing an org or taking on new risks and ventures.

4. Usability: How our partners, vendors, and internal associates benefit from utilizing our resources and the risks associated with that. Benefits of gathering data on our partners needs, desires, motivations, etc. Taking on new processes or methods, what's the best and worst case scenarios and how do we reduce the risk associated with it.