A risk management system is a structured framework that organizations employ to identify, assess, mitigate, monitor, and report risks that could impact their objectives and operations. The key components of such a system include:​ Risk Identification: Systematically recognizing potential risks that could affect the organization, encompassing internal and external factors. ​ Risk Assessment and Measurement: Evaluating and prioritizing identified risks based on their likelihood and potential impact, often using qualitative and quantitative methods. ​ Risk Mitigation (Treatment): Developing and implementing strategies to manage identified risks, such as avoidance, reduction, sharing, or acceptance, to align with the organization's risk appetite. ​ Risk Monitoring and Review: Continuously tracking identified risks and the effectiveness of mitigation measures, ensuring that risk management strategies remain relevant and effective over time. ​ Risk Reporting and Communication: Ensuring that relevant stakeholders are informed about the risk landscape, mitigation efforts, and any changes in risk status, fostering transparency and informed decision-making. ​ Risk Governance: Establishing a framework that defines roles, responsibilities, and accountability for risk management within the organization, ensuring that risk oversight aligns with corporate governance. ​ Integrating these components enables organizations to proactively manage risks, align risk strategies with business objectives, and enhance overall resilience.