Managing risk is not something that is done just once; it should be an integral part of the business — something that is monitored and enhanced regularly.

To improve its approach to risk management, an organization needs to understand the risks that could hamper its achievement of business objectives and find effective ways to respond to them.

This checklist provides a quick way to assess whether a business has the necessary elements of a good risk management framework in place.

• A tick in a “no” or “not sure” box indicates an important gap in the organization’s approach to risk — such gaps should be addressed as a matter of urgency.
• Items that receive a “yes” tick should be scheduled for further review. It is important to demonstrate that these elements of the risk management framework are working as intended and that opportunities for improvement are being identified. Action here can help the business to gain even greater value from its risk management efforts.

Scoring

Give yourself one point for each time you answered “yes.”

• If you score between 10 and 12 points, congratulations, you’ve built a strong foundation for your risk management program.
• If you score between six and nine points, you have implemented several good initiatives but have the opportunity to do even more to strengthen your risk management program.
• If you score fewer than six points, seize the opportunity now to put a risk management program in place and have a positive impact on your organization’s business performance.

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