What is one of the main benefits of having a risk governance framework in place?

A risk governance framework is designed to enhance an organization’s ability to identify, assess, and manage risks systematically and effectively. One of the significant benefits of this framework is streamlined decision-making, which occurs for several reasons.

Firstly, the framework establishes clear roles and responsibilities concerning risk management within the organization. This clarity enables quicker decision-making because individuals and teams understand their authority and the processes involved in escalating and resolving issues.

Secondly, having structured processes in place means that decision-makers have access to relevant, standardized information about risks. This allows for more informed decisions to be made rapidly, rather than having to sift through diverse sources of information or opinions.

Moreover, a risk governance framework typically involves the use of defined metrics and key performance indicators, which facilitate the prioritization of risks. When risks are evaluated in a consistent manner, it helps teams focus on the most critical issues first, thereby speeding up the decision-making process.

In contrast, increased costs, independence from external evaluations, and reduced communication channels generally do not align with the primary aims of a risk governance framework. Increased costs could hinder effective risk management, while independence from external evaluations may lead to a lack of perspective and potential blind spots in risk assessments. Reduced communication channels could actually complicate decision-making by limiting