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An Enterprise Risk Management Framework helps organizations identify, assess, and handle potential threats to their business in a structured way. For Kiwi businesses, it creates a systematic approach to managing everything from financial risks to health and safety obligations under the Health and Safety at Work Act 2015.

The framework typically includes risk assessment tools, control measures, and reporting procedures that align with New Zealand regulatory requirements. It helps boards and senior managers meet their governance duties while protecting their organization's assets, reputation, and stakeholders. Many NZ organizations use frameworks based on ISO 31000 standards, adapted to local business practices and compliance needs.

Your business needs an Enterprise Risk Management Framework when facing complex risks that require coordinated handling. This happens during major growth phases, when entering new markets, or after significant incidents expose gaps in risk controls. It's especially vital for regulated sectors like financial services, where the Financial Markets Authority expects robust risk management systems.

Times of change also trigger the need - mergers, new tech rollouts, or shifts in regulatory requirements all demand systematic risk oversight. The framework becomes essential when your board needs clear reporting on risk exposure, or when you're seeking to demonstrate due diligence under NZ health and safety laws.

• ISO 31000-based frameworks: Widely used in NZ, these follow international standards while incorporating local regulatory requirements
• Industry-specific frameworks: Tailored for sectors like banking (Reserve Bank guidelines), healthcare (Health & Safety compliance), or construction (site risk management)
• Integrated frameworks: Combine risk management with broader governance systems, ideal for listed companies meeting NZX requirements
• Simplified frameworks: Streamlined versions for SMEs that focus on core risks and essential compliance needs
• Digital frameworks: Modern systems that use risk management software and real-time monitoring, popular among tech-forward organizations

• Board of Directors: Ultimately accountable for approving and overseeing the Enterprise Risk Management Framework, ensuring it aligns with company strategy
• Risk Management Teams: Lead the development and implementation, coordinating across departments to identify and assess risks
• Compliance Officers: Monitor adherence to the framework and ensure it meets NZ regulatory requirements
• Department Managers: Apply the framework's policies within their areas and report on risk status
• External Auditors: Review and validate the framework's effectiveness, particularly for regulated industries or listed companies

• Risk Assessment: Document all potential risks across operations, finances, compliance, and strategic areas specific to your industry
• Stakeholder Input: Gather insights from department heads, employees, and key stakeholders about operational risks and controls
• Regulatory Review: List applicable NZ laws and regulations affecting your business, including FMA guidelines and sector-specific requirements
• Current Controls: Map existing risk management processes and identify gaps needing attention
• Implementation Plan: Develop clear procedures for monitoring, reporting, and reviewing risks regularly
• Resource Assessment: Define required staff, systems, and training needed to execute the framework effectively

• Purpose Statement: Clear objectives aligned with NZ risk management standards and organizational goals
• Scope Definition: Detailed coverage of operational, financial, and compliance risks specific to your industry
• Governance Structure: Roles and responsibilities of board, management, and risk committees
• Risk Assessment Process: Methodology for identifying, analyzing, and evaluating risks under NZ frameworks
• Control Measures: Specific actions and procedures to mitigate identified risks
• Reporting Requirements: Regular review cycles and escalation procedures
• Compliance Section: References to relevant NZ regulations and standards

An Enterprise Risk Management Framework often gets confused with a Risk Management Policy, but they serve distinct purposes in your organization's risk management structure. Here are the key differences:

• Scope and Function: The framework provides the overall structure and methodology for managing risks across the entire organization, while a policy outlines specific rules and procedures for handling individual risks
• Hierarchy: The framework sits at a higher strategic level, guiding multiple policies and procedures, whereas the policy operates as an operational document under the framework's guidance
• Implementation: The framework defines how risk management integrates across all business functions, while policies detail day-to-day risk handling procedures
• Review Cycle: Frameworks typically undergo less frequent reviews (annually or bi-annually), while policies need regular updates to address emerging risks and changing compliance requirements