There are multiple reasons why the documenting of a risk management framework within any organisation is highly crucial. These reasons traditionally include the demonstration of the conducted process’s accuracy to the company’s stakeholders for its potential review in the future, the facilitation of subsequent monitoring and improvement and information sharing. In addition, the framework’s documenting provides an audit trail, accountability mechanisms, a risk management plan, records or risks for the development of the company’s knowledge database and evidence of an appropriate systematic approach to risk identification and management.
Rationale and objectives for the management of risk accountabilities, methods and processes that may be used for risk management, the specific ways of the risk management performance’s measuring and reporting should be documented. Moreover, the areas of a risk management framework that require documenting include links between operational and strategic objectives and risk management, the scope of the organisation’s risk appetite, stakeholder analyses, risk profiles, and communication plans.