What is Risk Management?
Risk management is the process of identifying, analyzing, and responding to risk factors that could impact an organization's goals. It is a fundamental pillar of Governance, Risk, and Compliance (GRC) frameworks.
Types of Risk
Organizations face various types of risk:
- Strategic Risk
- Operational Risk
- Compliance Risk
- Financial Risk
- Cybersecurity & IT Risk
Risk Management Lifecycle
1. Risk Identification
2. Risk Assessment (likelihood and impact)
3. Risk Mitigation Strategies
4. Monitoring and Review
5. Reporting to Stakeholders
Integration into GRC
Effective risk management in GRC ensures that risk is not handled in isolation. It supports informed decision-making, ensures regulatory compliance, and aligns with governance objectives.