Global Risk Management Frameworks & Best Practices

Over the past 4–5 years, security teams have weathered a nonstop storm of challenges, from the COVID-19 pandemic to the Russia-Ukraine war, social justice protests, January 6th, and the conflict in Gaza. Visa’s Senior Director of Global Intelligence, Mary Hackman, aptly described it as a state of “permacrisis.”

When you’re a multinational corporation like Visa, world events hit close to home. Your employees, offices, and entire operations could be at risk. That’s where global risk management becomes essential.

At its core, global risk management is about preparation and agility. It helps you assess potential threats and coordinate swift responses to keep your people safe and your business operations on track. Think of it as your organizational safety net—ready to catch you when the unexpected happens.

What Is Global Risk Management?

Global risk management is a strategic process for identifying, assessing, and reducing risks across international operations. The primary goal is to protect people and assets, stay compliant, and keep business running smoothly—even in the face of unexpected global challenges.

The World Economic Forum (WEF) categorizes global risks into five main categories.

Global risk categories

5 Global Risk Management Frameworks

A global risk management framework is your blueprint for navigating uncertainty—a practical, structured approach to identifying, managing, and mitigating risks.
The idea of frameworks can feel heady, but these guidelines aren’t just theoretical; they provide actionable steps for addressing real-world threats in your business. Without a solid risk management plan in place, your company risks facing:

• Exposed sensitive information
• Erosion of trust
• Legal liabilities
• Revenue loss
• Operational disruptions

Following are some of the most widely used risk management frameworks businesses rely on daily.

1. COSO framework

The COSO Enterprise Risk Management (ERM) framework is widely adopted for its flexible, consistent approach to internal risk management. It’s particularly effective for multinational corporations that need uniformity while adapting to local environments.

COSO addresses all types of business risks, including compliance. Public and private companies, governments, non-profits, and businesses in highly regulated industries can use COSO to streamline risk management and internal controls across the organization. And with an emphasis on continuous improvement, COSO allows you to stay ahead of evolving challenges and effectively manage risks, even across borders.

Key components of the framework:

• Risk assessment: Addresses political, economic, currency, and regulatory risks across multiple regions
• Compliance: Meets global record-keeping standards like the Sarbanes-Oxley Act and others, helping you maintain regulatory alignment across jurisdictions
• Governance & communication: COSO facilitates seamless information flow, strong oversight, and ethical culture, regardless of where you operate
• Adaptability: Balances global consistency with the flexibility to tailor processes to local regulations and environments

2. ISO 31000

The International Organization for Standardization (ISO) 31000 framework is designed to be adaptable to any organization, regardless of size, industry, or geographic location. This makes it ideal for multinational corporations operating across diverse markets.

ISO 31000 provides a universal approach to enterprise risk management (ERM) so you can assess and manage threats consistently—whether in Silicon Valley or Sydney, Australia. The framework supports risk-based decision-making at all organizational levels. Its proactive approach lets you catch issues early for effective damage control.

Here’s a quick example: A global manufacturing company operating in multiple countries uses ISO 31000 to manage risks across its supply chain. In Southeast Asia, political instability due to upcoming elections raises concerns about factory shutdowns. In Europe, fluctuating currency exchange rates could affect profits, and in the U.S., potential trade restrictions on imports from China pose a threat to the supply chain.

The company analyzes each risk by likelihood and impact—political instability is high-impact and medium-likelihood, currency fluctuations are medium-impact and high-likelihood, and trade restrictions are high-impact and high-likelihood. To address these, they diversify suppliers in Southeast Asia by shifting some production to India and Singapore, hedge currency risks in Europe, and negotiate with suppliers to manage potential tariffs in the United States.

The company regularly monitors these risks and adjusts strategies based on changing conditions. Communication is key: Regional managers and corporate leadership stay aligned, ensuring everyone is prepared to respond to new risks as they arise.

The related standard, ISO 22301, applies to business continuity management.

3. Global Risk Assessment Framework (GRAF)

GRAF was established by the United Nations Office for Disaster Risk Reduction (UNDRR) to create a better way to assess and manage global risks, even in complex situations. Co-funded by the US and German governments, GRAF is based on four pillars:

• Data and analytics: Get better risk data by improving access, creating new sources, combining datasets, and working with experts.
• Knowledge generation: Develop new ways to analyze risks, create risk profiles, and use models to understand potential impacts.
• Partnerships and collaboration: Work with experts, different industries, and other countries to share knowledge and solutions.
• Capacity building: Help governments and organizations improve their ability to analyze risks with better tools, training, and hands-on methods.

4. NIST

On a global scale, organizations faced an average of 1,636 cyber attacks per week in Q2 2024—30% more than the previous year. With numbers like that, cybersecurity is no longer optional, and having a solid framework is essential.

Enter the NIST Cybersecurity Framework (CSF), developed by the U.S. National Institute of Standards and Technology.

The framework focuses on five core functions:

• Identify
• Protect
• Detect
• Respond
• Recover

NIST Cybersecurity Framework helps you stay ahead of risks, ensuring you’re ready to handle threats from all directions. With tools like “Implementation Tiers,” you can assess your cybersecurity maturity, while “Profiles” lets you tailor the framework to fit your specific risks and business goals.

The latest version, NIST CSF 2.0, introduces a new function—Govern—emphasizing the importance of strong governance in cybersecurity. It also strengthens supply chain risk management and aligns more closely with global standards, making it even more valuable for international businesses.

By adopting NIST CSF, you can shift from simply reacting to cyber threats to building a proactive, structured approach that strengthens your cybersecurity posture.

5. RIMS Risk Maturity Model®

The RIMS Risk Maturity Model® (RMM) helps you answer the questions “How mature is my ERM program?” and “How can I improve my ERM practices?” So, this model is beneficial if you already have a risk management program you want to evaluate or update. It’s also helpful in benchmarking your practices against industry standards.

RIMS RMM is an online self-assessment tool to identify strengths and weaknesses in your risk strategy. The model consists of seven key attributes, each evaluated on a five-level maturity scale:

1. ERM-based approach–Executive support within the corporate culture
2. ERM process management–Integration into business processes
3. Risk appetite management–Accountability within leadership and policy to guide decision-making
4. Root cause discipline–Identifying where problems originate in our workflows
5. Uncovering risks–Risk assessments to document risks and opportunities
6. Performance management–Executing vision and strategy using a balanced scorecard
   Business resiliency and sustainability – Integration into operational planning

After measuring your program’s effectiveness, the tool provides a roadmap for improvement with actionable steps to enhance your risk program’s maturity.

Best Practices for Managing Risks Globally

Global risk management focuses on anticipating risks and preparing smart solutions like checking the weather or looking both ways before crossing the street. Here are some best practices to help you stay ahead of the curve.

Merge risk management and strategic planning

Global risk management solutions work best as part of a more extensive system. This means:

• Getting support from the top
• Collaborating with internal teams
• Understanding your organization’s risk appetite
• Aligning risk management initiatives with specific business goals

For example, if your company wants to expand into new international markets, it might prioritize mitigating risks associated with market entry, local regulations, and trade barriers to ensure smooth expansion and regulatory compliance.

The risk management team will work closely with the finance, supply chain, and legal departments to identify and mitigate disruptions like supplier risk, volatile energy prices, and compliance issues across different regions. You’ll know which risks are considered acceptable, minor disruptions, and which are considered non-negotiable.

Finally, you’ll have a full mandate from the CEO to implement and enforce your risk management framework, ensuring company-wide buy-in and ample resources.

Cultivate a risk-aware culture

Your teams are immersed in risk management every day, but imagine how much more effective you could be if everyone understood its importance. Embed risk awareness into daily operations to cultivate a risk-conscious culture.

Encourage open discussions about risks at all levels, from front-line employees to top management, and offer training to help everyone identify potential hazards—financial, operational, or otherwise—and know how to respond appropriately. Ensure each team member understands their role in managing risk by clearly defining responsibilities for identifying, assessing, and mitigating risks across the organization.

For a risk-conscious culture to thrive, senior employees must lead by example. Ensure the board is actively involved in overseeing risk management, with regular updates and discussions at board meetings to keep the entire organization aligned on risk priorities.

Make the most of technology and data analytics

As your risk management program becomes more complex, technology can help you manage it all. As Visa’s Mary Hackman told us on The Employee Safety Podcast, the right tools and resources enable proactive communication in a crisis.

Visa’s Global Security Operations Center (GSOC) provides daily strategic and tactical reports, and the company’s internal website shows risk profiles by country. Employees can also access an app that allows two-way communication to share their location or request help.

Real-time data and threat intelligence help you spot risk patterns, make informed decisions, and respond quickly. With only a few critical minutes to act, technology and data will help you keep employees informed and safe, minimizing potential harm.

Collaborate with external experts

When dealing with risks in foreign territories, firsthand insights are invaluable. External experts bring specialized knowledge, an unbiased perspective, and cultural insights. You can tap into their expertise without the overhead of building it internally.

For example, a local real estate agent in Mexico can guide you through property laws, zoning rules, and market trends. They know the best locations for your business and handle lease or purchase terms, saving you from costly mistakes.

Having active connections in your communities keeps you informed of local risks and changes so you can adapt when issues arise. Depending on your situation, you might collaborate with:

• Risk management consultants
• Industry-specific experts
• Technical specialists
• Local law enforcement and regulatory officials
• First responders
• Financial risk specialists
• Insurance providers
• Supply chain risk experts
• Crisis and business continuity planners
• ESG consultants

Use scenario and contingency planning to prepare for possible risks

Knowing what to expect in a crisis leads to a quicker, more confident response—it’s why schools do fire drills or airline crews practice emergency landings.

Hackman’s teams were running through scenarios months in advance in the case of the Russia-Ukraine war. Based on what the GSOC saw in their day-to-day monitoring, they knew what situations to consider. “We were developing plans for alternate lodging, for example, to be available to our many employees in Kiev,” said Hackman. They also made plans to handle blocked roads and avoid the most crowded border crossings.

In your organization, you can use practical run-throughs like tabletop exercises and active shooter drills to prepare your teams for multiple possibilities.

Define and track KRIs

The saying “what gets measured gets improved” rings especially true in risk management. Key risk indicators (KRIs) are the metrics that help you stay ahead of potential threats by offering early warning signs of possible trouble.

By tracking these indicators, you can detect when risk levels exceed predefined thresholds and take action before significant impact.

To be valid, KRIs should be:

• Measurable
• Predictive
• Informative
• Easy to monitor

You can also group KRIs into several categories based on the area of focus (e.g., operational, strategic, financial, and compliance).

To use KRIs effectively, identify critical risks, define each indicator, set thresholds, and monitor them regularly.

Maintain your risk management framework with ongoing care

Much like brushing your teeth or daily exercise, managing risk in an organization is an ongoing commitment. Review your risk management plan often to make sure it’s still working well, and update it when new challenges or risks pop up.

Ask yourself, “Does this still fit with the company’s goals and the level of risk we’re willing to take”? Get feedback from your team and experts to keep it relevant, and stay on top of any new rules or regulations.

Train your teams to stay sharp, and periodically audit your tools and resources—are they sufficient to keep things running as needed? Regular check-ins and simple performance tracking will help you stay on track and improve.

The Road Ahead: Mastering Global Risk Management

Risk is a natural part of life—and business. Every project has the potential to go wrong, but don’t let that hold you back. Managing global risks requires strategic foresight, agile processes, and a unified team approach.

By embedding risk management into your company culture, raising awareness at every level, and using strong frameworks, you can safeguard your people, assets, and reputation. The goal isn’t just reacting when things go wrong—it’s staying ahead of the curve to secure a sustainable future in an unpredictable world.