Risk Management Framework

A Risk Management Framework (RMF) is a structure that organizes the process and activities of managing risks in an iterative fashion.

It establishes a consistent and repeatable approach to identifying, analyzing, responding to, and monitoring risks, ensuring alignment with organizational goals and integration across project or program lifecycles.

Key Characteristics

• Process-Oriented – Defines distinct, repeatable risk management steps
• Iterative and Cyclical – Applied continuously throughout the project or portfolio
• Organizationally Aligned – Supports enterprise-wide risk governance
• Foundation for Integration – Links with planning, execution, and control processes

Example Scenarios

• Applying a risk framework across a portfolio to standardize reporting and response
• Using the framework to evaluate and track strategic risks during business case development
• Incorporating the framework into PMO standards for all program-level reviews

Example Mermaid Diagram of an RMF

flowchart LR
    A[Establish Context]
    B[Risk Identification]
    C[Risk Analysis]
    D[Risk Evaluation]
    E[Risk Response Planning]
    F[Implement Risk Responses]
    G[Monitor and Review]
    H[Communication and Reporting]

    A --> B
    B --> C
    C --> D
    D --> E
    E --> F
    F --> G
    G --> A
    G --> H
    H --> B

Role in Risk Governance

• Ensures Consistency – Standardizes how risks are handled across initiatives
• Improves Visibility – Provides structure for escalation and oversight
• Strengthens Resilience – Supports proactive and responsive risk handling
• Aligns Practices – Connects operational risk management to strategic objectives

See also: Risk Management Plan, Risk Register, Monitor Risks, Governance, Risk Strategy.