Risk Management Framework
Comprehensive risk management framework supporting ISO 27001, 22301, and 9001 requirements. Systematic approach to identifying, assessing, treating, and monitoring risks.
Framework Owner
CISO
Approved By
CEO / Board
Effective Date
Q2 2026+
Review Cycle
Annual
1. Framework Overview
CUI Labs employs a systematic, risk-based approach to decision-making across all management systems. This framework integrates risk management into business processes, ensuring that risks are identified, assessed, treated, and monitored consistently.
Risk Management Principles
- •Creates and protects value
- •Integrated into organizational processes
- •Part of decision-making
- •Explicitly addresses uncertainty
- •Systematic, structured, and timely
- •Based on best available information
- •Tailored to organizational context
- •Considers human and cultural factors
- •Transparent and inclusive
- •Dynamic, iterative, and responsive to change
- •Facilitates continual improvement
2. Risk Management Process
1. Identify
Discover potential risks
2. Analyze
Understand nature and level
3. Evaluate
Compare against criteria
4. Treat
Select and implement controls
5. Monitor
Track and review effectiveness
3. Risk Assessment Methodology
5×5 Risk Matrix
| Likelihood ↓ / Impact → | Negligible | Minor | Moderate | Major | Catastrophic |
|---|---|---|---|---|---|
| Almost Certain | M | H | H | C | C |
| Likely | L | M | H | H | C |
| Possible | L | M | M | H | C |
| Unlikely | L | L | M | M | H |
| Rare | L | L | L | M | M |
Likelihood Criteria
- Rare: <5% probability in 12 months
- Unlikely: 5-25% probability
- Possible: 25-50% probability
- Likely: 50-75% probability
- Almost Certain: >75% probability
Impact Criteria
- Negligible: <$10K loss, no customer impact
- Minor: $10K-$100K, <10 customers
- Moderate: $100K-$1M, 10-100 customers
- Major: $1M-$10M, >100 customers
- Catastrophic: >$10M, regulatory action, brand damage
4. Risk Appetite & Tolerance
Risk Appetite Statement
CUI Labs has a low risk appetite for risks affecting:
- •Customer data confidentiality, integrity, or availability
- •Regulatory compliance and legal obligations
- •Business continuity and operational resilience
- •Brand reputation and customer trust
CUI Labs has a moderate risk appetite for risks related to innovation, market expansion, and technology adoption, provided they do not compromise the above areas.
Low Risk
Accept with monitoring
Medium Risk
Reduce or transfer
High Risk
Reduce immediately
Critical Risk
Avoid or reduce urgently
5. Risk Treatment Options
Avoid
Eliminate the risk source or activity
Example: Not entering high-risk markets
Reduce
Implement controls to lower likelihood or impact
Example: MFA, encryption, backups
Transfer
Share risk with third parties
Example: Cyber insurance, cloud providers
Accept
Acknowledge and monitor (requires justification)
Example: Low-impact, low-likelihood risks
6. Risk Categories
Strategic Risks
- •Market competition
- •Regulatory changes
- •Technology disruption
- •M&A integration
Operational Risks
- •Process failures
- •Supply chain disruption
- •Human error
- •Fraud
Financial Risks
- •Cash flow
- •Credit risk
- •Currency fluctuation
- •Investment losses
Compliance Risks
- •Regulatory violations
- •Contractual breaches
- •Data protection failures
- •Export controls
Technology Risks
- •System outages
- •Data breaches
- •Software defects
- •Obsolescence
Security Risks
- •Cyber attacks
- •Insider threats
- •Physical security
- •Third-party risks
7. Risk Register
CUI Labs maintains a centralized risk register documenting all identified risks, assessments, treatments, and ownership.
Risk Register Contents
- •Risk ID: Unique identifier
- •Risk Description: Clear statement of the risk
- •Risk Category: Strategic, operational, financial, etc.
- •Likelihood & Impact: Current and residual ratings
- •Risk Level: Low, medium, high, critical
- •Treatment Plan: Controls and actions
- •Risk Owner: Accountable individual
- •Review Date: Next assessment date
8. Monitoring & Review
Quarterly
Risk register review
Risk owners
Quarterly
Management review
Executive team
Annual
Comprehensive risk assessment
CISO / COO
Event-driven
Emerging risk assessment
Risk owners
Monthly
Key Risk Indicators (KRIs)
Risk owners
Annual
Risk framework review
Board
9. Roles & Responsibilities
Board of Directors
- •Set risk appetite and tolerance
- •Approve risk management framework
- •Review critical and high risks quarterly
Executive Management
- •Implement risk management framework
- •Allocate resources for risk treatment
- •Review risk register quarterly
Risk Owners
- •Identify and assess risks in their area
- •Implement and monitor risk treatments
- •Report risk status and changes
All Employees
- •Report risks and incidents
- •Comply with risk controls
- •Participate in risk awareness training
10. Related Policies
Document ID
FRM-RISK-001
Version
1.0
Classification
Internal