A risk management framework diagram provides a structured approach for organizations to identify, assess, mitigate, monitor and report on risks across the enterprise. It serves as a blueprint for managing risks comprehensively, ensuring potential threats to objectives, assets and operations are systematically addressed. The framework illustrates how risks are identified through environmental scanning, assessed based on likelihood and impact, and prioritized accordingly. It emphasizes the importance of risk mitigation strategies, continuous monitoring, and clear communication of risk information to stakeholders, enabling informed decision-making and the pursuit of opportunities while safeguarding interests.
