AuditRubric
gv-rm-4 high Govern / Risk Management Strategy

Strategic direction that describes appropriate risk response options is established and communicated

When a new risk is identified, teams need to know what response options are available and which are preferred by the organization. Without strategic guidance, individuals may default to the easiest or cheapest response rather than the one that best aligns with organizational priorities. Documenting the organization's preferred risk response approaches (accept, avoid, mitigate, transfer) and when each is appropriate prevents inconsistent decision-making and ensures risk owners take responses that leadership would endorse.

Estimated effort: 4h
governancerisk-managementstrategyrisk-responsedecision-making
Complete first: gv-rm-2

Implementation steps

  1. 1

    Define the organization's available risk response options

    Document the four standard risk response types: accept (tolerate the risk as-is), avoid (stop the activity creating the risk), mitigate (reduce likelihood or impact), and transfer (shift risk via insurance or contract). For each, provide guidance on when it is appropriate given the organization's risk appetite.

    confluencegoogle-docsnotion
  2. 2

    Establish approval thresholds for each response type

    Define who can authorize each response type at different risk severity levels. For example: a team lead may accept low risks, a director may accept medium risks, and only the CISO or board can accept high or critical risks. Document these thresholds in the risk management policy.

    confluencegoogle-docsnotion
  3. 3

    Communicate the strategic direction to risk owners

    Share the risk response framework with everyone who owns or manages risks, including engineering leads, department heads, and project managers. Include it in security awareness training for managers and reference it in the risk register template.

    confluenceslackgoogle-docsjira

Evidence required

Risk response strategy documentation

A written policy or framework section that defines available risk response options, when each should be used, and who is authorized to approve each type.

  • · Risk management policy with a risk response section covering accept, avoid, mitigate, transfer
  • · Risk response decision tree or matrix published in the knowledge base
  • · Risk register template with a response type field and approval workflow

Evidence of communication to risk owners

Documentation showing that the strategic direction for risk responses has been shared with people responsible for managing risks.

  • · Security training materials covering risk response options
  • · Team meeting notes or all-hands presentation referencing risk response guidance
  • · Email distribution or Confluence page acknowledgment records

Related controls