Risk Assessment Policy

Risk Assessment Policy

Overview & Purpose

[Company Name] recognizes the importance of systematically identifying and assessing risks that may impact our business operations, customer trust, or information security posture. This policy establishes a consistent approach to conducting risk assessments in order to support informed decision-making and compliance with applicable standards such as SOC 2.

Scope

This policy applies to all departments, systems, vendors, and business processes at [Company Name] that may introduce risk to the confidentiality, integrity, or availability of company data or operations. It includes both technical and non-technical areas such as IT systems, human resources, facilities, and third-party services.

Policy

• Risk Identification
  Risks shall be identified through internal reviews, security assessments, audits, incident trends, vendor reviews, or changes to systems, processes, or organizational structure.
• Assessment Frequency
  Formal risk assessments shall be conducted at least annually and whenever significant changes occur (e.g., product launch, infrastructure shift, major vendor onboarding).
• Risk Classification
  Risks shall be evaluated based on likelihood and impact, and categorized as Low, Medium, or High using a standardized scoring matrix.
• Documentation
  All identified risks shall be documented in the company's Risk Register, including details such as risk owner, category, likelihood, impact, mitigation strategy, and status.
• Responsibility
  The Security Officer or designated Risk Lead is responsible for coordinating assessments, maintaining the Risk Register, and ensuring appropriate follow-up.
• Mitigation and Monitoring
  For Medium and High risks, mitigation plans shall be developed, tracked, and reviewed until resolution. Risk owners are accountable for ensuring progress and closure.
• Review and Approval
  Risk assessment results shall be reviewed with leadership and stakeholders. Critical risks will be escalated for immediate action or executive decision.
• Retention
  Risk assessment records and the Risk Register will be retained for at least three years or as required by contractual or regulatory obligations.

Compliance

Violations of this policy may result in disciplinary action, up to and including termination. [Company Name] reserves the right to audit compliance with this policy at any time.

Review History