IRGC Risk Governance Framework

IRGC risk governance framework

IRGC has developed a comprehensive framework for risk governance.

The IRGC Framework provides guidance for early identification and handling of risks, involving multiple stakeholders. It recommends an inclusive approach to frame, assess, evaluate, manage and communicate important risk issues, often marked by complexity, uncertainty and ambiguity. The Framework is generic and adaptable. It can be tailored to various risks and organisations. The Framework comprises four interlinked elements, and three cross-cutting aspects:

1. Pre-assessment – Identification and framing.

• Leads to framing the risk, early warning, and preparations for handling it,
• Involves relevant actors and stakeholder groups, so as to capture the various perspectives on the risk, its associated opportunities, and potential strategies for addressing it.

2. Appraisal – Assessing the technical and perceived causes and consequences of the risk.

• Develops and synthesises the knowledge base for the decision on whether or not a risk should be taken and/or managed and, if so,
• Identifies and selects what options may be available for preventing, mitigating, adapting to or sharing the risk.

3. Characterisation and evaluation – Making a judgment about the risk and the need to manage it.  

• Process of comparing the outcome of risk appraisal (risk and concern assessment) with specific criteria,
• Determines the significance and acceptability of the risk, and
• Prepares decisions.

4. Management – Deciding on and implementing risk management options.

• Designs and implements the actions and remedies required to avoid, reduce (prevent, adapt, mitigate), transfer or retain the risks.

5. Cross-cutting aspects – Communicating, engaging with stakeholders, considering the context.

• Crucial role of open, transparent and inclusive communication,
• Importance of engaging stakeholders to both assess and manage risks, and
• Need to deal with risk in a way that fully accounts for the societal context of both the risk and the decision that will be taken.