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This section assesses what to consider when selecting the causes relevant to the respective risks and provides guidance on how to complete these within the application.
Causes in relation to risks are actual events or sets of circumstances that exist in the organisation, business unit or its environment, giving rise to the possibility of the risk occurring. The root causes of risk factors can be traced to four primary areas related to people, processes, systems, and external events.
Identifying the causes of any risk is essential to ensure a correct diagnosis of the root causes during the risk response stage, wherein the global risk response action library will be linked to the causes. The expectation is that this understanding will help people better decide which risks they should accept and which they should avoid or reduce.
Examples include the requirement to implement the programme or project in a developing country, the need to use an unproven new technology, the lack of skilled personnel, or the fact that the organisation has never done a similar project or programme.
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