Risk Management Policy - SME

The P06S Risk Management Policy forms the backbone of integrated risk oversight for SME organizations. Distinctively adapted for small and medium enterprises, its simplified roles, such as assigning overall risk management authority to the General Manager and utilizing a Risk Coordinator, ensure robust governance without reliance on specialized IT departments like a CISO or dedicated SOC. This makes the policy practical and actionable for organizations with limited resources while maintaining full alignment with international compliance standards, including ISO/IEC 27001:2022. The policy’s purpose is to define how risks related to information security, operations, technologies, and third-party services are systematically identified, assessed, and treated. Risk management is woven directly into operational and strategic activities such as planning, project execution, vendor selection, and incident response. By establishing clear objectives, like integrating repeatable assessment procedures, prioritizing risks to key assets and compliance, and maintaining an accurate Risk Register, it enables informed, timely decision-making and promotes business resilience. Its scope is comprehensive: it applies to all departments, users, and services (internal as well as outsourced), covering a full spectrum of risk areas from cyber threats and service outages, to compliance, legal, and reputational risks. Every employee, contractor, or service provider is mandated to follow the policy, for both reporting and managing risks, creating a culture of participation and accountability. Roles and responsibilities are spelled out clearly for each stakeholder group. The General Manager sets the risk appetite, endorses frameworks, and adjudicates top risks. Department Heads own and monitor operational risks, and the Risk Coordinator ensures centralized tracking, assessment, and documentation. Key governance requirements outlined include maintaining a detailed Risk Register, regular risk reviews (quarterly and at project milestones), risk scoring with both likelihood and impact metrics, and mandatory escalation of significant risks. Treatment options, accept, reduce, or transfer, are supported with prescribed documentation, oversight, and regular progress monitoring. Exception handling is covered comprehensively, with mechanisms for residual or unmitigated risks and stipulations for proper documentation and review. Audit readiness and regulatory compliance are at the core of this policy. All risk activities and decisions must be audit-ready, with policy reviews mandated annually, and earlier in the event of major incidents or business changes. Policy updates are versioned, communicated openly to staff, and incorporated into awareness training. Non-compliance procedures and escalation paths ensure accountability and continuous improvement. The policy’s explicit mapping to standards, including ISO/IEC 27001:2022, ISO/IEC 27002:2022, NIST SP 800-53 Rev.5, EU NIS2, EU DORA, and COBIT 2019, demonstrates its relevance and completeness for organizations seeking to meet or maintain regulatory requirements. As a licensed ClarySec LLC compliance product, the P06S Risk Management Policy is an essential governance tool for SMEs, supporting effective risk oversight and demonstrating due diligence to clients, partners, and regulators.