Risk Management Policy Template for United States

A Risk Management Policy outlines how an organization identifies, assesses, and handles potential threats to its business operations. For Filipino companies, it serves as a crucial framework that aligns with the Securities and Exchange Commission's governance requirements and BSP circular guidelines on risk oversight.

This policy sets clear rules for managing different types of risks - from financial and operational risks to compliance and reputation concerns. It typically includes specific roles and responsibilities, risk assessment procedures, and reporting protocols that help organizations protect their assets and stakeholders while maintaining regulatory compliance in the Philippine business environment.

Your organization needs a Risk Management Policy when expanding operations, entering new markets, or facing increased regulatory scrutiny in the Philippines. This becomes especially important when dealing with BSP-regulated activities, SEC compliance requirements, or when stakeholders demand stronger governance controls.

Use this policy to guide decisions during major organizational changes, after risk incidents, or when preparing for external audits. It's particularly valuable for financial institutions meeting BSP circular requirements, companies pursuing ISO certification, and businesses handling sensitive data under Philippine privacy laws. Having it ready before problems arise helps protect your organization and speeds up decision-making during critical situations.

• Operational Resilience Policy: Focuses on maintaining business continuity and critical operations during disruptions, aligning with BSP's guidelines on operational risk management and business continuity planning.
• Risk Assessment And Management Policy: Provides comprehensive framework for identifying, evaluating, and addressing all types of organizational risks, emphasizing systematic assessment processes and mitigation strategies required by Philippine regulators.

• Board of Directors: Approves and oversees the Risk Management Policy, ensuring alignment with Philippine corporate governance standards and SEC requirements.
• Risk Management Committee: Develops, updates, and monitors implementation of the policy, reporting directly to the Board on risk-related matters.
• Compliance Officers: Ensure the policy meets BSP regulations and other regulatory requirements while coordinating implementation across departments.
• Department Heads: Implement policy guidelines within their units and report risks to the Risk Management Committee.
• Employees: Follow risk management procedures and report potential risks through designated channels.

• Risk Assessment: Conduct a thorough analysis of your organization's specific risks, including operational, financial, and compliance risks under Philippine regulations.
• Regulatory Review: Gather current BSP circulars, SEC guidelines, and industry-specific requirements that apply to your organization.
• Stakeholder Input: Collect feedback from department heads and key personnel about operational challenges and existing risk controls.
• Documentation Structure: Our platform helps organize your policy with proper sections for roles, procedures, and reporting mechanisms.
• Internal Validation: Review draft with your risk committee and ensure alignment with existing company policies and procedures.

• Policy Purpose: Clear statement of objectives and scope, aligned with BSP and SEC requirements for risk management frameworks.
• Risk Categories: Detailed classification of operational, financial, compliance, and strategic risks specific to Philippine business context.
• Governance Structure: Defined roles and responsibilities of the Board, Risk Management Committee, and other key stakeholders.
• Risk Assessment Procedures: Step-by-step processes for identifying, analyzing, and evaluating risks.
• Reporting Requirements: Mandatory internal reporting protocols and external disclosure requirements under Philippine regulations.
• Review and Updates: Clear procedures for policy maintenance and periodic review schedules.

A Risk Management Policy differs significantly from an Enterprise Risk Management Framework, though they're often confused. While both deal with organizational risks, they serve distinct purposes in Philippine corporate governance.

• Scope and Detail: A Risk Management Policy provides specific procedures and rules for handling risks, while the Enterprise Risk Management Framework offers a broader strategic approach to risk across the entire organization.
• Implementation Level: The policy outlines day-to-day risk management activities and responsibilities, whereas the framework establishes the overall structure and principles for risk management.
• Regulatory Compliance: The policy directly addresses BSP and SEC requirements for specific risk controls, while the framework focuses on aligning risk management with business objectives and strategy.
• Review Cycle: Policies typically require more frequent updates to reflect changing operational needs, while frameworks undergo less frequent revisions, focusing on long-term risk management approaches.