Define Your Risk Management Strategy

As part of their governance responsibilities, senior enterprise executives should establish clear and actionable risk management guidance for organizations within their purview based on enterprise mission and business objectives.

Key elements of a Risk Management Strategy

Key elements of a Risk Management Strategy include:

Enterprise Strategy and Risk Thresholds

Organisations must clearly define their acceptable level of risk and establish specific thresholds to guide decision-making processes. This ensures that the enterprise's strategy aligns with its mission priorities while setting boundaries for risk management efforts.

Mission and Business Objectives Alignment

Cybersecurity efforts should directly support and align with the organisation's core mission and business objectives.

Resource Allocation

Capital and operational budgets should be allocated strategically to address risks at levels deemed acceptable by the organisation.

Key Risk Indicators (KRIs)

Measurable indicators should be identified and used to monitor and assess the organisation's risk exposure continuously.

Ongoing Monitoring and Adjustment

The risk management strategy must be reviewed and updated regularly to address evolving threats, technological advancements, and changes in the operating environment.

Regulatory Compliance

The strategy should incorporate guidance from relevant regulations, statutes, and directives to ensure compliance with external requirements.

As the risk landscape evolves (e.g., due to technological or environmental changes), enterprise leaders should continually review and adjust the risk strategy. For example, an enterprise subject to external regulation is likely to receive specific guidance regarding updated federal statutes and directives that must be considered when evaluating acceptable risk.