Risk management is the process of identifying, assessing and controlling threats to an organization's capital and earnings. These threats, or risks, could stem from a wide variety of sources, including financial uncertainty, legal liabilities, strategic management errors, accidents and natural disasters. IT security threats and data-related risks, and the risk management strategies to alleviate them, have become a top priority for digitized companies. As a result, a risk management plan increasingly includes companies' processes for identifying and controlling threats to its digital assets, including proprietary corporate data, a customer's personally identifiable information and intellectual property.
A documented risk management plan gives the Buyer assurance that you have procedures in place for proactively identifying and mitigating against potential threats and disruptions to their business. This is also another important opportunity for you to display your understanding of client needs, by calling attention to specific challenges and showing you have a plan to address them. For example, a typical risk is disruption in the supply chain; your plan for mitigating this risk might involve backup stores or access to alternative supplies.
Below is a Risk Management Policy template, which can be modified to suit your business context.