Influence Diagram for Risk Management

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Influence Diagram for Risk Management

An influence diagram for Risk Management is a graphical tool used by organizations to identify, assess and manage risk. It shows how each of the risk factors are connected and interact with each other to form an overall picture of potential risk. An Influence Diagram will also show risk solutions and their potential impacts, enabling managers to make well-informed decisions on the best course of action. Risk Managers use influence diagrams to identify which risks need to be addressed, priorities risks and assign resources accordingly. Finally, it enables organizations to develop strategies to manage potential risks in the most effective manner.

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