Risk Management

Risk Management

Identify, assess, and mitigate business and operational risks.

Risk Assessment Framework

Identification Categories

| Category | Examples |

|----------|----------|

| Strategic | Competition, market shifts, M&A integration |

| Operational | System failures, process gaps, human error |

| Financial | Currency, credit, liquidity, fraud |

| Compliance | Regulatory changes, data privacy, licensing |

| Reputational | Social media, PR crises, customer satisfaction |

| Security | Data breaches, cyber attacks, insider threats |

Assessment Matrix

Likelihood × Impact = Risk Score (1-25)

              Impact
         Low  Med  High
Likely    3    6     9
Possible  2    4     6
Rare      1    2     3

Score 1-3: Accept | 4-6: Mitigate | 7-9: Avoid/Transfer

Mitigation Strategies

| Strategy | When | Example |

|----------|------|---------|

| Avoid | High risk, low reward | Don't enter unstable market |

| Reduce | Manageable risk | Add security controls, backups |

| Transfer | Financial risk but can't eliminate | Insurance, vendor contracts |

| Accept | Low impact or expensive to fix | Minor process inefficiencies |

Business Continuity Plan (BCP)

Components

• Critical functions — what must keep running?
• RTO (Recovery Time Objective) — how fast to restore?
• RPO (Recovery Point Objective) — how much data loss tolerated?
• Alternate site — where to operate if primary is down?
• Communication plan — who notifies whom, how?

Testing

• Tabletop exercises: quarterly
• DR test: annually minimum
• Failover test: every 6 months
• Update BCP after each test or major change

Risk Register Template

| ID | Risk | Category | Likelihood | Impact | Score | Owner | Mitigation | Status |
|----|------|----------|-----------|--------|-------|-------|------------|--------|
| R01 | ...  | ...      | 3          | 4      | 12    | ...   | ...        | Active |