How do you document your risk management policies?

1 Why document your risk management policies?

Documenting your risk management policies is not only a good practice, but also a legal and ethical obligation. By documenting your policies, you can demonstrate that you have a systematic and proactive approach to managing risks, and that you have taken reasonable steps to prevent or mitigate adverse outcomes. Documenting your policies can also help you communicate them to your staff, clients, partners, and regulators, and foster a culture of risk awareness and accountability. Moreover, documenting your policies can help you review and improve them over time, and learn from your successes and failures.

2 What to include in your risk management policies?

Your risk management policies should cover a range of aspects, such as your risk management framework, which should include objectives, principles, roles and responsibilities, tools and methods, and reporting and review mechanisms. Additionally, you should create a risk register to list and categorize all identified and assessed risks. Risk treatment plans should also be created to address each risk, detailing expected outcomes, resources and timelines, performance indicators, and contingency plans. Lastly, periodic risk reports should be produced to monitor and evaluate your risk management performance; these should include key findings, achievements and challenges, lessons learned, and recommendations for improvement.

3 How to format your risk management policies?

Your risk management policies should be formatted in a way that makes them easy to read, understand, and use. To do this, use clear and concise language that avoids jargon, acronyms, and technical terms. Additionally, organize your policies into logical sections and subsections with headings and subheadings. Visual aids such as tables, charts, and diagrams can also help to present and summarize your data, analysis, and plans. Lastly, references and appendices can provide additional information or evidence that supports your policies. These references can cite sources and acknowledge influences while appendices can include risk management tools, templates, and forms.

4 How to store and update your risk management policies?

Your risk management policies should be stored and updated in a way that ensures their security, accessibility, and currency. To ensure this, you should use a secure and reliable platform that protects your policies from unauthorized access, modification, or loss. You should also use a central and common location that allows you to store and access your policies from anywhere and anytime, as well as share and collaborate on them with staff, clients, partners, and regulators. Additionally, it's important to use a consistent and standard format that preserves the quality and integrity of your policies. Furthermore, you should establish a regular and timely schedule that reflects the frequency of your risk management activities, aligns with reporting and review cycles, and notifies stakeholders of any changes or updates.

5 How to audit and review your risk management policies?

When auditing and reviewing your risk management policies, it’s important to use an independent and qualified auditor with the expertise and experience to evaluate your policies. Additionally, a comprehensive and systematic approach should be taken that covers all aspects and stages of your risk management policies. Furthermore, it’s beneficial to use a constructive and collaborative feedback that highlights the strengths and weaknesses of your policies. This feedback should provide practical and actionable suggestions for improvement, as well as encourage dialogue and learning.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?