Enterprise risk management helps a company understand threats to its objectives and choose proportionate responses. Risks should be described as possible events and consequences rather than vague labels.
Identify the important operational, commercial and financial dependencies. Assess the available controls and the evidence that they work. Define an early warning signal and a responsible person for material risks.
Review risks when products, suppliers or operating conditions change. Test contingency plans for disruptions that would materially affect the business. Escalate decisions when a risk exceeds the authority or resources of the responsible team.
Open Sources Used
This page uses open and institutional references as a frame; the final decision still belongs to the company record, threshold and owner.
Related Articles
Reading adjacent decision areas keeps the topic from becoming an isolated note.