Risk Management Policy

Risk Management Policy

Overview & Purpose

The purpose of this policy is to establish a consistent approach to identifying, assessing, and mitigating risks that may affect [Company Name]’s operations, information assets, and reputation. By proactively managing risk, the organization can support business continuity and maintain customer trust.

Scope

This policy applies to all departments, systems, processes, and personnel at [Company Name], including contractors and third-party service providers who handle company or customer data.

Policy

1. Risk Governance

• The Executive Team is responsible for overseeing the risk management process and approving the overall risk posture.
• Designated Risk Owners are accountable for monitoring and addressing specific risks in their areas of responsibility.

2. Risk Identification

• Risks must be identified through a variety of methods including team input, control testing, audits, incident reports, and vendor reviews.
• Identified risks must be documented in a central Risk Register.

3. Risk Assessment

• Each risk must be evaluated based on likelihood and impact using a standardized risk scoring system (e.g., High, Medium, Low).
• Risks should also be assessed for alignment with relevant compliance frameworks such as SOC 2.

4. Risk Mitigation and Treatment

• For each identified risk, the company will select one or more of the following strategies:
  • Avoid – eliminate the activity causing the risk
  • Mitigate – reduce likelihood or impact
  • Transfer – outsource or insure
  • Accept – acknowledge and monitor
• Mitigation plans must be documented, with progress tracked until resolution.

5. Monitoring and Review

• The Risk Register must be reviewed at least quarterly or upon significant organizational or technical changes.
• Closed risks must be retained for historical reference.

6. Third-Party Risk

• All vendors and partners must be assessed before onboarding and reviewed periodically for security and compliance risks.
• High-risk vendors require additional controls or written risk acceptance.

7. Incident and Risk Correlation

• Security incidents must be analyzed for root causes and used to inform the risk management process.

8. Employee Involvement

• Employees are encouraged to report potential risks or vulnerabilities through the appropriate channels.
• Risk management training is provided as part of onboarding and ongoing security awareness efforts.

Compliance

All personnel must comply with this policy. Failure to do so may result in disciplinary action. Exceptions to the policy must be formally reviewed and approved by the Executive Team.

Review History