Step 1: Choose an Appropriate Framework – Select a framework such as COSO, ISO 31000, or other industry standards. Ensure it aligns with the organization’s size, structure, and risk appetite.
Step 2: Define Roles and Responsibilities – Assign responsibilities to management, risk officers, and staff for monitoring, reporting, and responding to risks. Clear accountability ensures effective implementation.
Step 3: Monitor and Review Framework Effectiveness – Regularly assess how well the framework identifies and mitigates risks. Update policies and processes to address emerging risks and organizational changes.
Conclusion: Implementing a risk management framework ensures systematic identification and mitigation of risks. Selecting the right framework, defining responsibilities, and continuous monitoring enhances organizational stability.