1). Principles – Value Creation & Protection
Integrated – Risk Management is an integral part of all organizational activities.
A Structured and Comprehensive Approach – to risk management contributes to consistent and comparable results.
Customized – The risk management framework and process are customized and proportionate to the organization’s external and internal context related to its objectives.
Inclusive – The risk management framework and process are customized and proportionate to the organization’s external and internal context related to its objectives.
Dynamic – Risks can emerge, change or disappear as an organization’s external and internal context changes. Risk management anticipates, detects, acknowledges, and responds promptly to those changes and events.
Best Available Information – The inputs to risk management are based on historical and current information and future expectations. Risk management explicitly considers any limitations and uncertainties accosted with such information as timely, clear, and available to relevant stakeholders.
Human and Cultural Factors – Human behavior and culture significantly influence all aspects of risk management at each level and stage.
Continual Improvement – Risk Management is continually improved through learning and experience.
2). Framework – Leadership & Commitment
Integrating RM into activities – Customization of Processes, Policy, and Organizational Structure- demonstrates leadership commitment.
- Organization Structure and context, Internal and External relationships, processes, and practices. RM accountability in the organization. RM is part of the organization’s purpose, process, culture, and objectives.
- Consider the organization’s external and internal context. Articulate RM Commitment… Assigning organizational roles, authorities, and responsibilities, allocating resources, and Establishing communication and consultation.
- Develop an appropriate plan, including time and resources. Identify decision-making touchpoints in different processes—engagement and awareness of stakeholders. Make RM part of all activities throughout the organization.
- Periodically measure RM framework -purpose, implementation plans, indicators, and expected behavior. Suitable to support achieving business and RM objectives.
- Continually Monitor and adapt the RM framework. Continually improve the suitability, adequacy, and effectiveness of the RM framework. Identify improvement opportunities and develop plans and assign tasks for implementation.
3). Process Approach to Risk Management
The approach to managing risks in the business with the ISO-Compliant risk management system goes as follows:
- Active communication and consultation with the members of a business regarding implementing the risk management system.
- Process execution, such as implementing and operating the system.
- Risk identification.
- Risk Analysis.
- Risk prevention.
- Risk mitigation.
- Regular monitoring and reviewing.
