What are the primary components of a risk management framework?

The primary components of a risk management framework focus on systematically identifying, analyzing, and addressing risks that may impact an organization. The correct choice emphasizes four essential processes: risk assessment, risk response, risk monitoring, and risk governance.

Risk assessment involves identifying potential risks and evaluating their likelihood and potential impact on the organization. This foundational step ensures that an organization understands what risks it faces and can prioritize them accordingly.

Following assessment, the risk response phase involves determining how to manage those identified risks. This could include avoiding, transferring, mitigating, or accepting risks, depending on their nature and the organization’s risk appetite.

Risk monitoring is critical as it ensures that the risk landscape continues to be assessed over time, allowing for adjustments in response strategies as new risks emerge or existing risks change.

Finally, risk governance encompasses the structures, roles, and processes that ensure effective risk management practices are carried out and maintained throughout the organization. This includes the establishment of policies and accountability measures.

The other choices, while relevant in certain contexts, do not comprehensively cover the systemic approach to risk management as outlined in the correct answer. For instance, policy development and legal compliance are part of broader organizational governance rather than the core components of a risk management framework. Incident response and vulnerability scanning are more