What does the process of 'risk framing' involve in the FAIR model?

In the FAIR model, 'risk framing' is a crucial initial step in the risk assessment process. It involves defining the context within which risks are evaluated and managed. This includes identifying the organization's objectives, understanding the constraints that might affect risk management, and establishing the scope of the analysis. By framing the risk, an organization sets the foundation for a clear understanding of what risks need to be assessed and prioritized.

Establishing this context is essential because it guides how risks are identified, evaluated, and communicated throughout the organization. It helps ensure that the risk assessment aligns with business goals and that resources are allocated effectively. Without proper risk framing, assessments might lack focus, leading to potential misalignment with the organization's strategic objectives.

This process does not concern itself with assigning roles for risk management teams, collecting data for financial analysis, or communicating risks to stakeholders. Instead, it serves as the groundwork for effective risk analysis and communication in subsequent steps of the FAIR model. By properly framing the risk, organizations can make informed decisions that drive better outcomes in risk management efforts.