Home New York Governance, Risk, and Compliance Governance, Risk, and Compliance Risk Management Understanding Risk Management

Understanding Risk Management

The Risk Management product provides a centralized process to identify, assess, respond to, and continuously monitor Enterprise and IT risks that may negatively impact business operations. The application also provides structured workflows for the management of risk assessments, risk indicators, and risk issues.

Who uses Risk Management?

The complete risk process involves all areas of your organization working together.

Audit committee
IT steering committee
Risk officers (conduct risk assessment and identify all that can go wrong in business)
All levels of management (assist the risk officers with the identification of what can go wrong in their processes)

Key activities for Risk Management

Once key roles are identified, work together to identify the following items:

Determine what level of risk the organization is willing to accept? Get risk data in place and then determine what is acceptable.
Develop a risk management policy, through risk frameworks and risk statements.
Develop risk assessment and response procedures.
Implement controls to reduce your organization's exposure to risk. Repeat on a regular interval.
Measure your risk exposure and improvements.

Risk Management and the NowPlatform

Because the Risk Management application is built on the Now Platform, data and evidence is provided back to Risk Management.

Set up and run Risk Management and Advanced Risk components in this order:

Download Risk Management: Before you run GRC: Risk Management (com.sn_risk) in your instance, you must download it from the ServiceNow Store.
Download Advanced Risk: Before you run Advanced Risk in your instance, you must download it from the ServiceNow Store.
Mobile experience for GRC Risk Management: As a risk manager, use your Android or iOS mobile device to manage your work.
Quick start tests for Risk Management: Validate that Risk Management still works after you make any configuration change, such as apply an upgrade or develop an application. Copy and customize these quick start tests to pass when using your instance-specific data.
Manage risks, risk statements, and risk frameworks: The risk library contains all risk frameworks and risk statements. Risk frameworks are used to group risk statements into manageable categories, while risk statements group the individual risks. The risk register is the central repository for all potential risks that could occur at any time, anywhere in the organization.
Manage risk events: Risk events are potential or actual financial and non-financial losses, near-misses, and gains that occur within an organization.
Risk hierarchy and scoring: Starting with New York, risk managers can create hierarchies that include different types of risk (operational risk, IT risk, or strategic risk). Once the underlying risks are assessed, the risk scores are automatically rolled up across the risk statement hierarchy, providing better tactical and strategic decision-making.
Manage risk assessments: Risk assessments are surveys that gather evidence to determine risk. The Risk Assessment Designer provides a single interface that users can use to create, and edit attestations, as well as change scoring parameters. The question bank offers a library of questions for various categories, so you do not have to build each questionnaire from scratch. Risks start in a Draft state then move to Assess, which sends a notification to the Assessment respondents.
Manage policy exceptions and extensions: Policy exceptions and extensions provide temporary relief for a non-compliant control. The policy exception captures the rationale, comments, and evidence to support the acceptance or rejection of a policy exception request. Also, extension to an approved policy exception can be requested before the policy exception validity period. The control owner, the compliance manager, and the risk manager may be involved in the policy exception and extension workflow.
Manage entity and risk dependencies using the GRC: Workbench: The GRC: Workbench utilizes CMDB information to show the upstream and downstream relationships across all applications. These relationships enable consistent risk mapping and modeling across the enterprise.
Manage risk indicators: Continuous monitoring involves activities related to identifying and creating key risk and control indicators. Supporting information can be collected for those indicators through automatic data collection or manual tasks. Indicator results are then used to create issues for controls, update risk scores, and provide supporting information for audit activities and control testings.
Manage risk issues and remediation: Issues can be created manually to document audit observations, remediations, or to accept any problems. They are automatically generated from indicator results, attestation results, or control test effectiveness.
Manage continuous monitoring for risks between Risk Management and Vulnerability Response: Continuous monitoring for risks is a feature integration between the GRC: Risk Management and the Security Operations Vulnerability Response products, which uses indicators to quickly identify high impact vulnerabilities based on business impact.
Out-of-the-box GRC: Risk Management Performance Analytics Solution: Performance Analytics Solutions contain preconfigured dashboards. These dashboards contain actionable data visualizations that help you improve your business processes and practices.

Previous topic

Next topic

Release version

Understanding Risk Management

Who uses Risk Management?

The complete risk process involves all areas of your organization working together.

Audit committee
IT steering committee
Risk officers (conduct risk assessment and identify all that can go wrong in business)
All levels of management (assist the risk officers with the identification of what can go wrong in their processes)

Key activities for Risk Management

Once key roles are identified, work together to identify the following items:

Determine what level of risk the organization is willing to accept? Get risk data in place and then determine what is acceptable.
Develop a risk management policy, through risk frameworks and risk statements.
Develop risk assessment and response procedures.
Implement controls to reduce your organization's exposure to risk. Repeat on a regular interval.
Measure your risk exposure and improvements.

Risk Management and the NowPlatform

Because the Risk Management application is built on the Now Platform, data and evidence is provided back to Risk Management.

Set up and run Risk Management and Advanced Risk components in this order:

Download Risk Management: Before you run GRC: Risk Management (com.sn_risk) in your instance, you must download it from the ServiceNow Store.
Download Advanced Risk: Before you run Advanced Risk in your instance, you must download it from the ServiceNow Store.
Mobile experience for GRC Risk Management: As a risk manager, use your Android or iOS mobile device to manage your work.
Quick start tests for Risk Management: Validate that Risk Management still works after you make any configuration change, such as apply an upgrade or develop an application. Copy and customize these quick start tests to pass when using your instance-specific data.
Manage risks, risk statements, and risk frameworks: The risk library contains all risk frameworks and risk statements. Risk frameworks are used to group risk statements into manageable categories, while risk statements group the individual risks. The risk register is the central repository for all potential risks that could occur at any time, anywhere in the organization.
Manage risk events: Risk events are potential or actual financial and non-financial losses, near-misses, and gains that occur within an organization.
Risk hierarchy and scoring: Starting with New York, risk managers can create hierarchies that include different types of risk (operational risk, IT risk, or strategic risk). Once the underlying risks are assessed, the risk scores are automatically rolled up across the risk statement hierarchy, providing better tactical and strategic decision-making.
Manage risk assessments: Risk assessments are surveys that gather evidence to determine risk. The Risk Assessment Designer provides a single interface that users can use to create, and edit attestations, as well as change scoring parameters. The question bank offers a library of questions for various categories, so you do not have to build each questionnaire from scratch. Risks start in a Draft state then move to Assess, which sends a notification to the Assessment respondents.
Manage policy exceptions and extensions: Policy exceptions and extensions provide temporary relief for a non-compliant control. The policy exception captures the rationale, comments, and evidence to support the acceptance or rejection of a policy exception request. Also, extension to an approved policy exception can be requested before the policy exception validity period. The control owner, the compliance manager, and the risk manager may be involved in the policy exception and extension workflow.
Manage entity and risk dependencies using the GRC: Workbench: The GRC: Workbench utilizes CMDB information to show the upstream and downstream relationships across all applications. These relationships enable consistent risk mapping and modeling across the enterprise.
Manage risk indicators: Continuous monitoring involves activities related to identifying and creating key risk and control indicators. Supporting information can be collected for those indicators through automatic data collection or manual tasks. Indicator results are then used to create issues for controls, update risk scores, and provide supporting information for audit activities and control testings.
Manage risk issues and remediation: Issues can be created manually to document audit observations, remediations, or to accept any problems. They are automatically generated from indicator results, attestation results, or control test effectiveness.
Manage continuous monitoring for risks between Risk Management and Vulnerability Response: Continuous monitoring for risks is a feature integration between the GRC: Risk Management and the Security Operations Vulnerability Response products, which uses indicators to quickly identify high impact vulnerabilities based on business impact.
Out-of-the-box GRC: Risk Management Performance Analytics Solution: Performance Analytics Solutions contain preconfigured dashboards. These dashboards contain actionable data visualizations that help you improve your business processes and practices.

How search works:

Topics are ranked in search results by how closely they match your search terms

Understanding Risk Management

Understanding Risk Management

Who uses Risk Management?

Key activities for Risk Management

Risk Management and the NowPlatform

On this page

Understanding Risk Management

Understanding Risk Management

Who uses Risk Management?

Key activities for Risk Management

Risk Management and the NowPlatform

Log in to personalize your search results and subscribe to topics