The risk management process is the systematic and continuous process of identifying, analyzing, evaluating, and treating the risks that may affect the organization’s objectives, operations, or assets1. The risk management process should be aligned with the organization’s overall risk management framework and strategy, and support the organization’s value creation and protection2.
Having the risk management process reviewed by a third party is a good practice that can provide various benefits for the organization, such as:
Enhancing the credibility and reliability of the risk management process and outcomes
Identifying and addressing any weaknesses, gaps, or errors in the risk management process and controls
Providing independent and objective feedback and recommendations for improving the risk management process and performance
Ensuring compliance with the relevant laws, regulations, and standards for risk management3
Among the four options given, the primary reason to have the risk management process reviewed by a third party is to obtain an objective view of process gaps and systemic errors. This means that the third party can help to:
Assess the adequacy and effectiveness of the risk management process and its alignment with the organization’s risk appetite and tolerance
Detect and report any inconsistencies, inefficiencies, or inaccuracies in the risk identification, analysis, evaluation, or treatment activities
Identify and prioritize the root causes and consequences of the process gaps and systemic errors, and their impact on the organization’s risk exposure and acceptance
Suggest and implement corrective or preventive actions that can resolve or mitigate the process gaps and systemic errors, and prevent their recurrence
References = Risk Management Process - ISO 31000, Enterprise Risk Management - Wikipedia, How to Select a Third-Party Risk Management Framework
