How Risk Management Works

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1. Identify Risks

Start by asking "what could go wrong?" for each process or activity in your organization. For every risk, capture the process, what-if scenario, immediate impact, and likely outcome. RiskReg assigns each risk a unique code and tracks it from identification through to resolution.

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2. Score with a 5x5 Matrix

Each risk is scored on two dimensions: likelihood (1-5) and impact (1-5). The product gives a risk score from 1 to 25. You score twice: the inherent risk (before controls) and the residual risk (after controls are applied). This shows how much your controls actually reduce exposure.

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3. Choose a Treatment Strategy

Every risk needs a response. RiskReg supports the four standard strategies: Avoid (eliminate the activity), Reduce (add controls to lower likelihood or impact), Transfer (insurance, outsourcing), or Accept (within appetite, monitor only).

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4. Link Controls

Controls are the measures you put in place to mitigate risks. Link controls directly to risks so you can trace exactly which measures address which threats. Controls can be mapped to compliance frameworks like ISO 27001, SOC 2, DORA, and NIS2 for regulatory traceability.

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5. Review Effectiveness

Controls are only as good as their implementation. Effectiveness reviews evaluate each control on three dimensions: design (is it well-designed?), implementation (is it properly deployed?), and operational effectiveness (does it work in practice?). Reviews follow an approval workflow so findings are tracked and resolved.

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6. Monitor on the Dashboard

The risk dashboard gives you a real-time overview: total risk count, high-risk count, percentage of risks within your appetite, and a filterable risk inventory. Configure your organization's risk appetite levels to define what "acceptable" means for your specific context.