Risk assessment in organizations involves a comprehensive approach that integrates policies and people with various risk indicators. A robust risk management framework typically employs 15 key indicators of operational risks, covering areas such as process failures, human errors, and system breakdowns. Additionally, it addresses 9 other risk types, including financial risks (e.g., market, credit, and liquidity risks), reporting disclosure risks (ensuring accurate and timely financial reporting), internal control risks (evaluating the effectiveness of control measures), and compliance risks (adherence to laws and regulations). This multi-faceted approach ensures that policies are not only well-defined but also effectively implemented by personnel across all levels of the organization. By utilizing these diverse risk indicators and categories, organizations can create a holistic view of their risk landscape, enabling more informed decision-making and proactive risk mitigation strategies. This comprehensive risk assessment methodology helps in identifying potential vulnerabilities, prioritizing risk management efforts, and fostering a culture of risk awareness throughout the organization.

1. Policy Inventory and Review
   * Catalog all existing organizational policies related to risk management
   * Review each policy for relevance, currency, and effectiveness
   * Identify gaps in policy coverage
2. Risk Identification
   * Use existing policies as a foundation to identify known risks
   * Conduct workshops with stakeholders to uncover additional risks not addressed by current policies
   * Categorize risks (e.g., strategic, operational, financial, compliance)
3. Policy-Risk Alignment
   * Map identified risks to relevant policies
   * Highlight risks not adequately covered by existing policies
4. Risk Analysis and Evaluation
   * Assess likelihood and impact of each risk using a consistent scale (e.g., 1-5)
   * Calculate risk scores (Likelihood x Impact)
   * Prioritize risks based on scores and organizational context
5. Control Assessment
   * Review existing controls outlined in current policies
   * Evaluate control effectiveness for high-priority risks
   * Identify control gaps or areas for improvement
6. Risk Treatment
   * Develop strategies to address high-priority risks:
      * Policy enhancement
      * New policy creation
      * Additional controls implementation
      * Risk acceptance (for low-impact risks)
7. Reporting and Communication
   * Create risk register linking risks to relevant policies
   * Develop action plans for risk treatment
   * Communicate findings and recommendations to stakeholders
8. 8. Monitoring and Review
   * Establish a schedule for regular policy and risk reviews
   * Implement key risk indicators (KRIs) aligned with policy objectives
   * Adjust policies and controls based on ongoing risk assessments
9. Continuous Improvement
   * Gather feedback on policy effectiveness in managing risks
   * Update policies and risk assessment processes as needed
   * Integrate lessons learned into future risk management efforts

Effective risk management helps meet and maintain these regulatory requirements
In some risk assessment frameworks, the assessment is completed once a risk rating is provided; however, since NIST SP800-30 is a risk management framework, it takes into account the remediation and mitigation aspect in its overall process and it’s worth remembering that control recommendations are part of the risk assessment report.