Risk Management Guide - Matrix Scoring & Treatment Workflows

Complete guide to managing risks in Flow - from creation to treatment workflows with configurable matrix scoring and automated review scheduling.

Flow's risk management system provides end-to-end risk lifecycle management with configurable matrix scoring, treatment workflows, and automated review scheduling. Built for organizations that need comprehensive risk visibility and control.

Overview

The risk management module is the core of Flow's GRC platform, providing:

Configurable Risk Matrix with 3x3 to 10x10 scoring (default 5x5)
Treatment Workflows with decision rationale and residual risk tracking
Automated Review Scheduling with customizable cadences
Multi-framework Support for ISO 27001, NIST CSF, COSO ERM, and more
Audit Trail with complete change history

Creating Risks

Multi-step Risk Creation

Flow uses a guided multi-step process to ensure comprehensive risk documentation:

Risk Details: Title, description, category, and owner assignment
Risk Assessment: Likelihood and impact scoring using your organization's matrix
Treatment Planning: Choose treatment strategy with rationale
Review Scheduling: Set next review date based on organizational cadence

Risk Categories

Risks can be categorized using configurable categories such as:

Operational - Business process and operational risks
Financial - Financial loss and market risks
Compliance - Regulatory and compliance risks
Technology - IT systems and cybersecurity risks
Strategic - Business strategy and competitive risks

Risk Scoring System

Configurable Matrix

Organizations can configure their risk matrix:

Matrix Size: 3x3, 4x4, 5x5 (default), up to 10x10
Level Cutoffs: Define Low/Medium/High/Critical thresholds
Custom Definitions: Likelihood and impact descriptions

Live Scoring

Risk scores are calculated in real-time using your organization's settings:

Inherent Risk: Likelihood × Impact before controls
Residual Risk: Likelihood × Impact after control implementation
Risk Level: Automatically assigned based on score and cutoffs

Treatment Workflows

Treatment Options

Flow supports four standard treatment strategies:

Accept - Accept the risk as-is with rationale
Mitigate - Implement controls to reduce risk
Transfer - Transfer risk through insurance or contracts
Avoid - Eliminate the risk source entirely

Residual Risk Tracking

After treatment planning:

Residual Likelihood: Expected likelihood after controls
Residual Impact: Expected impact after controls
Residual Score: Calculated automatically
Validation: Residual risk cannot exceed inherent risk

Treatment Rationale

Document decision-making with:

Treatment Justification: Why this treatment was chosen
Implementation Plan: How controls will be implemented
Success Metrics: How effectiveness will be measured

Review Scheduling

Automated Reviews

Flow automatically schedules risk reviews:

Default Cadence: 90 days (configurable per organization)
Custom Periods: Set specific review dates per risk
Dashboard Alerts: Visual indicators for overdue reviews
Background Jobs: Automated flagging of risks past review date

Review Process

During risk reviews:

Reassess Scoring: Update likelihood and impact
Control Effectiveness: Evaluate current controls
Treatment Progress: Track action completion
Schedule Next Review: Set future review date

Integration with Controls

Control Linking

Risks can be linked to multiple controls:

Preventive Controls: Reduce likelihood of occurrence
Detective Controls: Improve detection capabilities
Corrective Controls: Minimize impact when risks occur

Control Effectiveness

Track how controls impact risk:

Effectiveness Rating: High/Medium/Low effectiveness
Coverage Analysis: Which risks are covered by controls
Gap Identification: Risks lacking adequate controls

Actions Management

Risk-based Actions

Create actions directly from risks:

Implementation Actions: Deploy new controls
Assessment Actions: Evaluate existing controls
Review Actions: Scheduled risk reviews
Remediation Actions: Address control gaps

Action Tracking

Monitor action progress:

Kanban Board: Visual workflow management
Due Date Tracking: Overdue action alerts
Assignment Management: Clear ownership
Progress Updates: Status and completion tracking

Compliance Mapping

Framework Alignment

Map risks to compliance frameworks:

ISO 27001: Information security management
NIST CSF: Cybersecurity framework
COSO ERM: Enterprise risk management
GDPR: Data protection requirements
SOC 2: Service organization controls

Multi-framework Support

Single risks can map to multiple frameworks:

Cross-framework Visibility: See framework coverage
Compliance Reporting: Framework-specific views
Gap Analysis: Identify missing framework elements

Risk Analytics

Dashboard Integration

Risk data feeds into Flow's analytics dashboard:

Interactive Risk Matrix: Visual risk distribution
KPI Tracking: Risk level trends over time
Risk Velocity: Creation vs closure rates
Treatment Effectiveness: Actual vs planned risk reduction

Business Intelligence

Advanced analytics provide insights:

Risk Concentration: Areas of highest risk
Control Performance: Most/least effective controls
Trend Analysis: Risk patterns over time
Benchmark Metrics: Compare against industry standards

Best Practices

Risk Identification

Regular Assessments: Quarterly risk identification sessions
Stakeholder Input: Include diverse perspectives
Scenario Planning: Consider emerging risks
Industry Benchmarks: Learn from peer organizations

Risk Documentation

Clear Descriptions: Specific, measurable risk statements
Impact Quantification: Dollar amounts where possible
Probability Estimation: Historical data and expert judgment
Regular Updates: Keep risk information current

Treatment Planning

Cost-Benefit Analysis: Balance control costs with risk reduction
Implementation Timeline: Realistic deployment schedules
Success Metrics: Measurable effectiveness indicators
Regular Review: Assess treatment effectiveness

Getting Started

Configure Settings: Set up your organization's risk matrix and categories
Import Library Items: Use pre-built risks from compliance frameworks
Create First Risk: Follow the guided multi-step process
Link Controls: Associate relevant controls with your risks
Schedule Reviews: Set up automated review cadences
Monitor Dashboard: Track risk trends and KPIs

Flow's risk management system scales with your organization, providing the structure and automation needed for effective enterprise risk management.

Introduction