Standards and Regulations on Risk Management
Several standards and regulations guide risk management. Here are some of the most commonly used:
ISO 31000:2018: This is an international standard that provides principles and guidelines for risk management. It provides a framework for identifying, assessing, treating, monitoring, and communicating risks.
COSO ERM Framework: This is a framework developed by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) that provides a comprehensive approach to enterprise risk management. It includes eight components that organizations can use to develop and implement an effective ERM program.
NIST Cybersecurity Framework: This is a framework developed by the National Institute of Standards and Technology (NIST) that guides managing cybersecurity risks. It includes a set of best practices for identifying, protecting, detecting, responding to and recovering from cybersecurity incidents.
Basel III: This is a set of regulations developed by the Basel Committee on Banking Supervision that provides guidelines for managing financial risks in banks. It includes requirements for capital adequacy, liquidity risk management, and stress testing.
- GDPR: This is a regulation developed by the European Union that provides guidelines for managing data privacy and security risks. It includes requirements for data protection, data subject rights, and breach notification.
- Sarbanes-Oxley Act: This is a law developed in the United States that provides guidelines for managing financial risks in publicly traded companies. It includes requirements for internal controls, financial reporting, and audit procedures.
These standards and regulations provide a framework for organizations to develop and implement effective risk management programs. By following these guidelines, organizations can identify and manage risks more effectively, and reduce the likelihood and impact of negative events.