What is the systematic approach used to manage risk at an enterprise level called?

The systematic approach used to manage risk at an enterprise level is known as the Risk Management Framework. This framework provides a structured way to identify, assess, and manage risks within an organization. It encompasses policies, processes, and procedures that guide organizations in establishing risk management strategies aligned with their overall business objectives.

Implementing a Risk Management Framework allows enterprises to gain a comprehensive understanding of their risk exposure, enabling better decision-making regarding which risks to accept, transfer, mitigate, or avoid. It involves continuous monitoring and reviewing of risk management practices to ensure they remain effective and relevant over time.

While risk assessment, risk mitigation, and risk avoidance are all important components of the overall risk management process, they represent specific activities or strategies within the broader framework. Risk assessment focuses on identifying and evaluating risks, risk mitigation involves reducing the impact or likelihood of risks, and risk avoidance is the action of eliminating risks entirely. The Risk Management Framework integrates these components into a cohesive strategy for managing risk across the organization.