Patent Document ID: 7809634
Application ID: 11176762
Patent Flag: 1

Claim One:
1. A method for managing and assessing risk to an organization, the method comprising the steps of: providing a storage medium for storing data and programs used in processing data; providing a central processing unit for processing data, wherein the central processing unit performs the determining steps; dissecting the organization into two parts, the two parts comprising risk producing functions and risk handling functions; determining a cost of the risk handling functions; determining an aggregate risk quantification, the aggregate risk quantification comprising an enterprise-wide total cost of risk value that comprises the cost of the risk handling functions and a first value that is the result of subtracting variances from a business plan caused by a cost of Active Risk Management (ARM), a cost of Risk Sharing/Transfer (RST), and Impact of Standard Risks (ISR) from a variance of a financial variable from the business plan, as adjusted for extraordinary items; establishing a baseline value for risk to the organization based on the determined aggregate risk quantification; defining a measurable goal, wherein data used to determine the aggregate risk quantification is used to define the goal; determining after a defined timeframe whether the organization accomplished the goal; if the goal was not accomplished, reviewing the process to determine where adjustments could be made to more accurately arrive at the goal; and repeating the steps of setting a goal and determining whether the organization accomplished the goal.