Which role does governance play in the Open FAIR framework?

In the Open FAIR framework, governance plays a crucial role in ensuring that risk management aligns with the organization's overall objectives. This alignment is essential because it helps organizations to monitor and manage risks effectively within the context of their strategic goals. By integrating risk management into the governance structure, organizations can make informed decisions that reflect their risk appetite and ensure that resources are allocated appropriately.

Effective governance helps to create a structured approach to risk management, promoting accountability and transparency in how risks are assessed and handled. It ensures that risks are not only identified and assessed but also that there are processes in place for monitoring and mitigating those risks in line with organizational priorities. This alignment with corporate objectives helps in achieving overall business resilience and sustainability.

In contrast, maximizing risk exposure, creating risk metrics, or developing new business strategies are not direct roles of governance within the Open FAIR framework. While these activities can play a part in broader risk management practices, governance specifically focuses on the alignment of risk management practices with the organization's long-term goals and values.