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Developing a Risk Management Policy

Risk management is most effective when integrated into management values, established at the highest level and defined by the organisational policy for managing risk. The risk policy sets out the objectives for risk management and the commitment by senior management to risk management. The risk policy may include:

1. Objectives and rationale for managing risk;
2. Relationship between the risk policy and strategic business plans;
3. The risk framework and range of risks that need to be managed;
4. Guidance on what may be regarded as acceptable risk;
5. Processes used to manage risk;
6. Accountabilities for managing risks of various types;
7. What risk management capabilities are available to support and assist those accountable for managing risks;
8. The requirements for risk monitoring, risk review and risk reporting in regard to the risk policy.
9. The frequency of periodic review of the risk management system; and
10. A statement of commitment to the risk policy by directors and the organisations executive.

Implementing Risk Management Plans and Risk Policy

An awareness of and commitment to risk management at all levels within the organisation is critical to the effective implementation of the risk management plan and policy. Read more on implementation of your risk plan and risk policy...