ABSTRACT
This chapter reviews the essential components of an incident management system. The recording, management and analysis of risk incidents are a critical component of the operational risk management process. Incident management deals with a risk story that has occurred and has, or will likely lead to, an actual negative consequence. A risk incident therefore occurs once a risk story has reached the risk effect stage. A risk incident that must be subjected to the incident management process needs to be defined as part of the organisation’s risk policies. It may not be worthwhile formally recording and managing small incidents as the cost to manage and record may exceed the benefits derived. In designing an incident management process for a specific incident type, the various needs to be determined, some of them are: Who will be responsible for closing the record? Who will identify the incident and who will be responsible for making the initial record?
