If the residual risk level is not acceptable, additional measures must be implemented, reviewed, and adjusted periodically to ensure they remain effective. The fifth step is to periodically review and adjust mitigation measures as necessary to ensure they remain effective in reducing risk to an acceptable level. This includes monitoring and reporting residual risk levels, as well as evaluating the effectiveness of controls, policies, and procedures. The sixth step is to continuously assess and manage risks as part of the organization’s overall risk management program. This includes monitoring the internal and external environment for new risks, adjusting risk management strategies as necessary, and communicating risks and risk mitigation efforts to key stakeholders. Overall, a well-executed risk mitigation process can help organizations avoid financial loss, reputational damage, and regulatory non-compliance. It provides a framework for identifying and managing risks in a structured and systematic way, which can help to ensure that an organization is well-positioned to achieve its strategic objectives.
