Risk Management Framework Worksheet
1. Risk Identification
Objective: Identify potential risks that could impact the organization.
Instructions:
- List all potential risks.
- Categorize each risk (e.g., strategic, operational, financial, compliance).
Risk Description | Category | Potential Impact | Likelihood | Current Controls |
---|---|---|---|---|
e.g., Data Breach | Operational | High | Medium | Firewall, Encryption |
e.g., Regulatory Non-Compliance | Compliance | High | Low | Compliance Training, Audits |
Questions:
- What are the most significant risks identified?
- How do these risks align with your organization’s strategic objectives?
2. Risk Assessment
Objective: Assess the severity and likelihood of identified risks.
Instructions:
- Evaluate the potential impact of each risk.
- Assess the likelihood of occurrence.
- Assign a risk rating based on impact and likelihood.
Risk Description | Impact (1-5) | Likelihood (1-5) | Risk Rating |
---|---|---|---|
e.g., Data Breach | 5 | 3 | 15 |
e.g., Regulatory Non-Compliance | 4 | 2 | 8 |
Questions:
- How does the risk rating help prioritize risk management efforts?
- What criteria were used to assess the impact and likelihood?
3. Risk Mitigation Strategies
Objective: Develop strategies to mitigate identified risks.
Instructions:
- For each risk, define mitigation strategies.
- Assign responsibilities for implementation.
Risk Description | Mitigation Strategy | Responsible Party | Timeline | Status |
---|---|---|---|---|
e.g., Data Breach | Enhance Cybersecurity Measures | IT Department | Q1 2024 | In Progress |
e.g., Regulatory Non-Compliance | Conduct Regular Compliance Audits | Compliance Officer | Q2 2024 | Planned |
Questions:
- How will the mitigation strategies be implemented and monitored?
- What are the resources required for effective risk mitigation?
4. Risk Monitoring and Review
Objective: Establish a process for monitoring and reviewing risks.
Instructions:
- Define how often risks will be reviewed.
- Identify indicators for risk status.
Risk Description | Monitoring Frequency | Indicators of Risk Status | Review Date |
---|---|---|---|
e.g., Data Breach | Quarterly | Number of Security Incidents | March 2024 |
e.g., Regulatory Non-Compliance | Semi-Annually | Audit Results | September 2024 |
Questions:
- What methods will be used to monitor and review the effectiveness of risk management strategies?
- How will changes in risk status be communicated to stakeholders?
5. Risk Communication
Objective: Ensure effective communication of risk information.
Instructions:
- Identify stakeholders.
- Define how and when risk information will be communicated.
Stakeholder | Communication Method | Frequency | Responsible Party |
---|---|---|---|
Senior Management | Quarterly Reports | Quarterly | Risk Manager |
All Employees | Risk Awareness Training | Annually | HR Department |
Questions:
- How will communication be tailored to different stakeholder groups?
- What feedback mechanisms are in place to improve risk communication?
This worksheet provides a comprehensive approach to managing risks and can be adjusted according to the specific needs of your organization.