Our sample Risk Management Policy outlines a structured framework for managing risks across an organization aiming to enhance risk awareness, manage risks effectively, and maintain transparent risk profiles within business units. It details the processes and methodologies for identifying, assessing, responding to, and monitoring risks, ensuring that they align with the company's strategic objectives and regulatory requirements. This policy is applicable at all levels of the organization, including group, divisional, and business unit levels, and covers various risk categories such as strategic, reputation, credit and compliance risks.

Furthermore, the attached policy document specifies roles and responsibilities for risk management, emphasizing the role of line management in day-to-day risk management practices. It includes detailed sections on risk assessment, performance monitoring, compliance and the assurance structure, which involves regular audits and reviews to ensure the effectiveness of the risk management framework. The policy also highlights the importance of maintaining a culture of risk awareness and continuous improvement, encouraging knowledge sharing and proactive risk management throughout the organization.

Sample procedures include:

• Management should establish risk responses required to achieve business unit objectives in accordance with the acceptability of the risk.
• Conduct a formalized risk assessment at least annually, including the identification, prioritization, measurement, and categorization of all key risks affecting business unit objectives.
• Tailor performance monitoring to the specific product or service under consideration and incorporate monitoring systems as appropriate.
• Monitor key risks and controls continuously, implementing appropriate risk responses where necessary.