Mastering Risk Management

RISK MANAGEMENT FRAMEWORKS

A framework for risk management makes the practical implementation of risk governance possible. Before looking at a few framework examples, there are a number of principles. The first thing is to plan the scope of the integral risk management framework and gain board support.

Each firm is different, both in size and type, so any framework will be customised and proportionate to the level of risk faced by the firm. Having said that, it’s an integrated framework, which should be well-structured and should include all the firm’s activities and all stakeholders. Any framework will reflect the culture of the firm. That’s the way risk is embedded.

Finally, as we have already mentioned in this chapter, any framework is dynamic. ...