Who is primarily responsible for managing a specific risk?

The primary responsibility for managing a specific risk lies with the risk owner. The risk owner is the individual or group designated to take accountability for particular risks within their domain. This role involves identifying, assessing, and monitoring the risk as well as deciding on risk treatment strategies to mitigate or control it effectively. The risk owner is directly responsible for ensuring that appropriate measures are in place and that the risk is integrated into the overall risk management framework.

In many organizations, the risk owner has a clear understanding of the potential impact of the risk on various objectives and is positioned to make informed decisions on how to respond to that risk. They collaborate with other stakeholders, such as risk managers and compliance officers, to ensure that risk management strategies align with organizational goals and regulatory requirements.

The risk manager, while also important in the risk management process, typically focuses on facilitating the overall risk management framework and supporting risk owners rather than owning specific risks themselves. The team leader and compliance officer play crucial roles as well, but their responsibilities are generally more aligned with leadership and regulatory adherence, rather than the direct ownership and management of risks.