Mitigating Risks With Risk Management Frameworks

Mitigating Risks with Risk Management Frameworks Today, the business environment with its expansions beyond geographical boundaries, high-tech infrastructure, digitally communicating and networked environment, as well as the use of e-commerce for online marketplace challenges the business with a number of risks. A combination of the probability of an event and its consequences, risk can be managed by the coordinated activities that would control and direct an organization with regard to it.

In a business, risks can evolve from financial markets, project failures, legal liabilities, credit risk, accidents, natural disasters or even a deliberate attack from competitors. Under these circumstances, risk management is a simple practice of systematically selecting cost effective approaches for minimizing the effect of threat.

However, all risks cannot be completely mitigated due to financial and practical limitations. Nevertheless, risk management helps enterprises meet its objectives through the planning, allocation of resources for decision making and other productive activities. Risk management frameworks can be thus be defined as a set of functional activities and associated definitions specific to an organization that can stipulate the processes used to manage risks.

A good risk management framework is one that will help enterprises to improve the methods of managing risks through transparency and intelligible features for the benefit of the stakeholders efficiency of processes and sharing and deploying of best practices for risk management The technologically enabled environment has further increased the use of mobile devices and applications to provide mobility for the workforce and to ensure business continuity in case of any disasters. Nevertheless, this has also loaded the enterprises with cyber threats and malicious activities leading to data leakage, project failures and financial loss for the organization. This has led to the increasing need for mobile and application security.

With information risk management a major cause of concern in today business, experts have worked out benchmark risk management framework which consists of three basic elements: operations to reduce risk corporate management for strategic risk management decisions risk assessment and treatment for assessing risks and its management options For an effective protection of information, global enterprises should consider a risk management approach that would balance the need for information security along with the needs of the enterprise that will ensure success in operations.

Leading service providers have developed standard-based risk management frameworks that not only conforms to the COSO ERM, NIST 800.30, ISO 27005 standards but are also simple enough to be implemented with ease.

Further, the frameworks will help enterprises integrate the compliance requirements with the risk treatments which will enable enterprises to make ‘risk intelligent’ decisions, for implementation of risk controls. Such endto-end risk management frameworks will help enterprises sustain through the risks in the environment and protect business critical data.

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