What are the main components of a risk management framework?

The main components of a risk management framework center around the systematic process of identifying, assessing, responding to, and monitoring risks. Risk identification is vital as it involves recognizing potential threats and vulnerabilities that could impact an organization. Following identification, risk assessment is conducted to analyze the likelihood of risks and their potential impact, which helps prioritize the risks needing attention. Risk response entails formulating and implementing strategies to mitigate, transfer, accept, or avoid the identified risks. Finally, risk monitoring involves continuous observation of the risk environment and the effectiveness of risk management strategies, allowing for adjustments as necessary.

This comprehensive approach is essential for organizations looking to manage risks effectively, ensuring they are prepared to handle potential threats while minimizing their impact on operations and objectives. The other options, while relevant to security or risk in some context, do not cover the holistic and systematic nature of a risk management framework as discussed.