Distribute a portion of the risk through a contract with another party, such as insurance. Distribute all of the risk through a contract with another party, such as outsourcing. Many ownership risks are insurable risks, and the primary risk management strategy is risk transfer or risk sharing through insurance. Process risks are primarily managed through an active system of internal controls in the processes, including active management oversight. Behavioral risks are perhaps the most varied and most difficult.
Management is about managing business risks.
An integrated risk management approach using a number of techniques is necessary to cover the full range of risks in the framework. A framework of business risk can provide a common ground for managers, auditors and other stakeholders to establish effective and efficient risk management for their organization. The framework is useful also as a template or tool to stimulate the imagination about how the organization achieves its goals in an uncertain environment. With a common language, imagination and a thorough knowledge of the business process, the organization is more likely to achieve its business goals.