M_o_R Framework

 

Management of Risk (M_o_R) is a route map for risk management. It can help organizations identify, assess and control risks and put in place effective frameworks for making informed decisions. 

M_o_R is a route map for risk management, bringing together principles, an approach, a set of interrelated processes, and pointers to more detailed sources of advice on risk management techniques and specialisms. It also provides advice on how these principles, approach and processes should be embedded, reviewed and applied differently depending on the nature of the objectives at risk.

An effective framework is based on four core concepts:

 

• M_o_R Principles - these are essential for the development of good risk management practice. They are all derived from corporate governance principles in the recognition that risk management is a subset of an organization's internal controls.

• M_o_R Approach - the principles need to be adapted and adopted to suit each individual organization. Accordingly, a company's approach to the principles needs to be agreed and defined within a risk management policy, process guide and strategies, and supported by the use of risk registers and issue logs.

• M_o_R Processes - there are four main process steps, which describe the inputs, outputs and activities involved in ensuring that risks are identified, assessed and controlled. Embedding and reviewing M_o_R - having put in place the principles, approach and processes, an organization needs to ensure they are consistently applied and that their application undergoes continual improvement in order for them to be effective.