ABSTRACT
Risk management frameworks provide an essential overarching methodology which ensures that all of the detailed operational risk processes and practices operated within an organisation are cohesive and work together. Informal operational risk management frameworks have been in place since the beginning of time. These frameworks are usually undocumented and exist in the way people think and react to given situations. A formal risk management framework applied to an organisation provides the following key benefits: consistency in the approach to, and quality of, managing all operational risks; the ability to consolidate and compare risk information from different parts of the organisation; a basis for developing and maintaining a strong risk and control culture; a basis for increasing risk knowledge and skills; and consistency in risk language. The risk management principles cover the key attributes that should be present in an effective risk management framework.
