A risk management framework is a system for identifying, evaluating and prioritising risks and minimising their impact. The primary goal of a risk management framework is to preserve a company's capital and earnings while allowing it to develop2. There is no one-size-fits-all approach to risk management, as different organizations face different types and levels of risks depending on their industry, size, culture, objectives, and strategies3. Therefore, the organization should ensure that its risk management framework is tailored to its specific needs and circumstances, and reflects its risk appetite and tolerance.
References:
1: Risk Management Framework (RMF) Definition - Investopedia 2: A Guide to the Risk Management Framework (With Examples) 3: What Is A Risk Management Framework (RMF)? 2023 Guide - SelectHub :
Risk Resources in Internal Audit | The IIA