There are a lot of risk management frameworks out there. So many, in fact, that it can be hard to keep track of them all—let alone decide which one is right for your organization. To help you out, we’ve compiled a list of the five most popular risk management frameworks, along with a brief description of each.
1: COSO ERM Framework
The Committee of Sponsoring Organizations of the Treadway Commission (COSO) is a private-sector initiative that provides guidance on enterprise risk management (ERM). Released in 2004, the COSO ERM Framework is based on eight components: Control Environment, Risk Assessment, Control Activities, Information and Communication, Monitoring Activities, and ERM Objectives. Many organizations use the COSO ERM framework because it provides a comprehensive approach to managing risk.
2: ISO 31000 Risk Management Standard
The International Organization for Standardization (ISO) 31000 is an international standard for risk management. It was published in 2009 and is based on a previous standard, ISOGuide 73:2002. The ISO 31000 standard provides principles and generic guidelines on how to approach risk management. Unlike some other risk management frameworks, the ISO 31000 standard is not industry-specific; rather, it can be applied to any type of organization in any sector.
3: NIST Cybersecurity Framework (CSF)
The National Institute of Standards and Technology Cybersecurity Framework (NIST CSF) was released in 2014 in response to Executive Order 13636, which called for the development of a voluntary cybersecurity framework “to reduce cyber risks to critical infrastructure.” The NIST CSF draws upon existing standards, guidelines, and practices—such as the ISO 27001/27002 information security standards—to help organizations manage cybersecurity risks. The framework is organized around five core functions: Identify, Protect, Detect, Respond, and Recover.
4: ITIL Service Lifecycle
Information Technology Infrastructure Library (ITIL) is a set of detailed practices for managing IT service delivery that has been endorsed by major organizations around the world such as IBM and Microsoft. ITIL covers all aspects of service management from strategy and design through Transition and Operation. While ITIL does not explicitly address risk management, many organizations use it alongside other risk management frameworks such as ISO 27001/27002 or COBIT 5.
5: OCTAVE Allegro
Developed by Carnegie Mellon University’s Software Engineering Institute (SEI), OCTAVE Allegro is an operational risk assessment method designed specifically for information systems. OCTAVE Allegro consists of three steps: acquiring organizational intelligence; performing self-assessments; and conducting collaborative assessments with team members. OCTAVE Allegro can be used to identify potential threats and vulnerabilities as well as assess an organization’s preparedness for possible attacks.
Understanding which framework might be right for your organization is critical to effective risk management. In this blog post, we’ve taken a look at five popular frameworks: COSO ERM Framework; ISO 31000 Risk Management Standard; NIST Cybersecurity Framework (CSF); ITIL Service Lifecycle; and OCTAVE Allegro. We hope this overview has helped you better understand each framework and what it has to offer your organization.
Looking to align your risk management practices to a popular framework like the ones mentioned above? Check out Connected Risk’s Enterprise Risk Management solution.