Risk Monitoring and Communication
Risk monitoring and communication are important elements of risk management. Risk monitoring is an ongoing process that helps to ensure continuous control effectiveness. There should be a structured communication channel for employees to report a risk to management. At the same time, management should provide relevant risk-related information to concerned employees.
Risk Reporting
The results of risk monitoring should be presented to management at regular intervals. These results should be meaningful to the recipient and be presented in a simple manner without the excessive use of technical terms. Red (high-risk), amber (medium-risk), and green (low-risk) reporting help management understand the risk posture of the organization.
A risk analysis should also include details about potential impact as it will help determine the extent of the risk mitigation measures required.
Key Risk Indicators
A risk indicator is a measure used by...
