An effective risk management framework includes.
a) Clearly defined risk management policies and
procedures
covering
risk identification, acceptance, measurement,
monitoring, reporting and control.
b) A well constituted organizational structure defining
clearly
roles and responsibilities.
c) There should be an effective management information
system
that ensures flow of information
from operational level to top
management and a system to address
any exceptions
observed.
d) The framework should have a mechanism to ensure an
ongoing review of systems, policies
and procedures for risk
management and procedure to adopt
changes.