Risk Management Overview
Understand how PartnerAlly helps you identify, assess, and manage organizational risks.
Risk Management Overview
Risk management is a core component of any compliance program. PartnerAlly provides tools to identify, assess, prioritize, and track risks across your organization.
What Is Risk Management?
Risk management involves:
- Identifying potential threats and vulnerabilities
- Assessing the likelihood and impact of risks
- Prioritizing which risks to address first
- Mitigating risks through controls and actions
- Monitoring risk status over time
Good risk management isn't about eliminating all risks—it's about understanding your risks and making informed decisions about how to handle them.
Risk Sources in PartnerAlly
Risks come from several sources:
| Source | Description |
|---|---|
| Compliance Gaps | Gaps can create risks if not addressed |
| Document Analysis | AI identifies potential risks in policies |
| Manual Entry | You add risks from assessments or findings |
| Third-Party | Vendor and supplier risks |
| Operational | Business process risks |
The Risk Module
Access risk management from the sidebar:
- Risk Registry - Complete list of all identified risks
- Priority Queue - AI-ranked risks needing attention
Risk Properties
Each risk in PartnerAlly has:
| Property | Description |
|---|---|
| Title | Brief description of the risk |
| Description | Detailed explanation |
| Category | Security, Compliance, Operational, etc. |
| Severity | Critical, High, Medium, Low |
| Likelihood | Probability of occurrence |
| Impact | Business impact if realized |
| Status | Open, Mitigating, Mitigated, Accepted |
| Owner | Person responsible for the risk |
Severity Levels
Risks are categorized by severity:
| Severity | Color | Description |
|---|---|---|
| Critical | 🔴 Red | Existential threat, immediate action required |
| High | 🟠 Amber | Significant impact, urgent attention needed |
| Medium | 🟢 Green | Moderate impact, planned response appropriate |
| Low | 🔵 Blue | Minor impact, monitor and address as convenient |
Risk Status
Risks move through these statuses:
| Status | Meaning |
|---|---|
| Open | Identified, not yet addressed |
| Mitigating | Active work to reduce risk |
| Mitigated | Risk reduced to acceptable level |
| Accepted | Acknowledged, decision to accept |
| Closed | No longer applicable |
Risk Treatment Options
For each risk, you can:
| Treatment | When to Use |
|---|---|
| Mitigate | Implement controls to reduce likelihood/impact |
| Transfer | Shift risk to another party (insurance, outsourcing) |
| Accept | Acknowledge and document with approval |
| Avoid | Change plans to eliminate the risk |
AI-Powered Risk Features
Priority Queue
AI analyzes your risks and suggests prioritization based on:
- Severity and impact
- Likelihood of occurrence
- Relationship to compliance gaps
- Current mitigation status
- Framework requirements
Risk Scoring
AI calculates a risk score considering:
- Inherent risk (before controls)
- Residual risk (after controls)
- Control effectiveness
- Historical patterns
Documentation Sections
Risk Registry
View and manage all organizational risks.
Priority Queue
AI-ranked risks needing attention.
Adding Risks
How to add new risks to the registry.
Risk Details
Understanding the risk detail view.
Crypto Risks
Cryptocurrency and blockchain-specific risks.
Risk Management Best Practices
Regular Reviews
- Review open risks weekly or monthly
- Reassess severity as situations change
- Update mitigation progress
- Close risks that are no longer relevant
Ownership
- Assign an owner to every risk
- Owners are accountable for tracking and mitigation
- Clear ownership prevents risks from being ignored
Documentation
- Document all risk decisions
- Record mitigation actions taken
- Keep acceptance approvals on file
- Maintain audit trail for compliance
Integration with Gaps
- Link risks to related compliance gaps
- Addressing gaps often mitigates risks
- Use workflows to manage both together
Unmanaged risks can become compliance issues. Regular risk reviews are essential for maintaining a healthy compliance posture.
Common Questions
How is a risk different from a gap?
| Gaps | Risks |
|---|---|
| Missing compliance coverage | Potential negative outcomes |
| Identified by document analysis | From various sources |
| Have specific framework controls | Broader business impact |
| Resolved when addressed | Managed, never fully eliminated |
How many risks should we track?
There's no magic number:
- Too few - May be missing important risks
- Too many - Can become unmanageable
- Right amount - All material risks with clear owners
Do all risks need workflows?
No. Not every risk requires a workflow:
- Critical/High risks should have mitigation plans
- Medium risks may have simpler action items
- Low risks may just need monitoring
- Accepted risks need documentation, not workflows
Next Steps
- Risk Registry - View all risks
- Priority Queue - See AI prioritization
- Adding Risks - Create new entries