Business Risk Management Guide
Types, process, frameworks, and tools.
Risk Types
Operational risk
Source: Process failures
Mitigation: Controls, procedures
Financial risk
Source: Market, credit
Mitigation: Hedging, diversification
Strategic risk
Source: Business decisions
Mitigation: Planning, analysis
Compliance risk
Source: Regulatory violations
Mitigation: Monitoring, training
Reputational risk
Source: Public perception
Mitigation: Communication, ethics
Cyber risk
Source: Security threats
Mitigation: Protection, response
Management Process
1. Identify risks
2. Assess impact
3. Evaluate probability
4. Prioritize risks
5. Develop mitigation
6. Implement controls
7. Monitor effectiveness
8. Review regularly
9. Update assessments
10. Report to leadership
Risk Frameworks
ISO 31000
Focus: Risk management
Approach: Standard process
COSO ERM
Focus: Enterprise risk
Approach: Integrated model
NIST CSF
Focus: Cybersecurity
Approach: Tiered approach
ISO 27001
Focus: Information security
Approach: Management system
Risk Tools
1. Risk registers
2. Heat maps
3. Probability matrices
4. Impact assessments
5. Control testing
6. Scenario analysis
7. Key risk indicators
8. Reporting dashboards
Risk Management Checklist
1. Identify all risk types. 2. Assess impact severity. 3. Evaluate probability levels. 4. Prioritize by urgency. 5. Develop mitigation strategies. 6. Implement control measures. 7. Monitor effectiveness continuously. 8. Review assessments regularly. 9. Update for changes. 10. Report to leadership. Risk management = proactive protection. Risks identified. Impact assessed. Probability evaluated. Priorities set. Mitigation developed. Controls implemented. Effectiveness monitored. Reviews conducted. Updates applied. Reports delivered.