The maturity of organizational risk management refers to the degree to which risk management is embedded and integrated into the organization’s culture, processes, and decision-making1. A higher level of maturity implies that the organization has a clear and consistent understanding ofits risk appetite and tolerance, and that it can effectively identify, assess, respond, monitor, and communicate risks2.
The best way to address the issue of participants focusing on the financial cost to mitigate risk rather than choosing the most appropriate response is to raise the maturity of organizational risk management. This can help to:
Ensure that risk management is aligned with the organization’s strategic objectives and values, and that risk responses are based on the potential impact and likelihood of risks, not just on the cost of mitigation
Foster a risk-aware culture that encourages proactive and collaborative risk management, and that recognizes and rewards good risk management practices
Provide adequate training and guidance for risk management roles and responsibilities, and ensure that risk management skills and competencies are developed and maintained
Implement a robust and consistent risk management framework, methodology, and tools that support the risk management process and enable continuous improvement and learning
Enhance the quality and reliability of risk information and reporting, and ensure that risk management performance and outcomes are measured and evaluated3
References = Risk Maturity Model - Wikipedia, Risk Maturity Model - ISACA, Risk Maturity Model - IRM
