Risk Management Program
Purpose and Scope
The purpose of the Risk Management Program is to identify, assess, mitigate, and monitor risks that could impact RSO Consulting’s operations, data security, and service delivery. This program applies to all company processes, systems, and data assets.
Risk Management Objectives
- Identify potential risks to RSO Consulting’s operations, data, and reputation.
- Assess the likelihood and impact of identified risks.
- Implement mitigation strategies to reduce risk exposure.
- Monitor risks continuously to proactively address any changes.
- Ensure compliance with industry regulations and standards.
Risk Management Team
The Risk Management Team (RMT) oversees all risk-related activities. This team comprises representatives from relevant departments, including IT, Legal, Operations, and Management. Key roles include:
- Risk Manager: Leads risk management efforts, oversees assessments, and coordinates responses.
- IT Security Officer: Manages risks related to data security and technology infrastructure.
- Compliance Officer: Ensures adherence to regulatory standards and manages compliance-related risks.
- Operations Lead: Oversees operational risk management to ensure business continuity.
Risk Identification
Risks are identified through regular assessments and various channels, including:
- Threat Intelligence: Monitoring for new security threats or vulnerabilities that may affect our systems.
- Internal Audits and Assessments: Regular security audits and assessments to uncover potential operational, compliance, or security risks.
- Employee Feedback: Employees are encouraged to report observed risks to the RMT.
- Vendor and Third-Party Evaluations: Assessing third-party services to ensure compliance with security and performance standards.
Risk Assessment and Prioritization
Each identified risk is evaluated for potential impact and likelihood using a risk matrix. Risks are then categorized as:
- High: Risks that could critically impact business operations, data security, or regulatory compliance.
- Medium: Risks that may disrupt operations or data integrity but are manageable with mitigation strategies.
- Low: Risks with minimal impact that can be monitored for any changes.
Risk Mitigation Strategies
Appropriate mitigation strategies are developed based on the risk’s level:
- Risk Avoidance: Altering processes to avoid activities that could introduce high risks.
- Risk Reduction: Implementing controls to reduce risk exposure, such as firewalls, encryption, and access controls.
- Risk Transfer: Shifting the risk to third parties (e.g., through insurance or outsourced services).
- Risk Acceptance: For low-level risks, accepting the risk with plans to monitor and manage if conditions change.
Risk Monitoring and Review
The Risk Management Team regularly reviews identified risks to detect any changes in their status, severity, or likelihood. Monitoring includes:
- Continuous Monitoring: Tools and systems are in place to detect threats or changes in risk levels in real time.
- Periodic Reviews: Formal reviews of identified risks and mitigation measures are conducted quarterly to ensure relevance.
- Vendor and Third-Party Audits: Regular evaluations of third-party partners to confirm they meet risk management standards.
Reporting to Management
The Risk Manager provides quarterly risk reports to senior management, summarizing:
- Key risks and potential impacts.
- Status of mitigation measures.
- New risks identified and recommended actions.
- Compliance with regulatory or contractual obligations related to risk management.
Training and Awareness
All employees receive training on risk awareness and the Risk Management Program. The Risk Management Team undergoes additional training to stay updated on best practices, new threats, and regulatory changes.
Documentation and Record Keeping
All risk management activities are documented, including identified risks, assessment results, mitigation steps, and review notes. Documentation is maintained to demonstrate compliance and facilitate continuous improvement.
Program Review and Updates
The Risk Management Program is reviewed annually to ensure alignment with RSO Consulting’s business goals, regulatory requirements, and the evolving threat landscape. Updates are made as necessary and communicated across the organization.