Material Risk
What is Material Risk?
A risk of sufficient magnitude that its occurrence could significantly affect the organization's financial condition, operations, or reputation.
Terms that appear alongside material risk
Each of these is named in at least one of the same controls as material risk. The number is how many controls name both.
- risk management framework 10 shared controls
- risk appetite 6 shared controls
- risk appetite statement 6 shared controls
- remediation 3 shared controls
- compliance 3 shared controls
- risk governance 3 shared controls
- risk culture 3 shared controls
- governance 3 shared controls
Frameworks that govern material risk
What the standards actually require on material risk
Requirements naming material risk across 6 standards, quoted from the control text.
The risk management framework must provide a structure for identifying and managing each material risk so the institution is prudently and soundly managed, having regard to the size, business mix and complexity of its operations.
CPS220-P22 · Framework Structure for Managing Each Material Risk →A responsible entity must establish and maintain a process or system in its CIRMP, as far as reasonably practicable, to minimise or eliminate any material risk of a cyber and information security hazard occurring and to mitigate the relevant impact of such a h...
critical-infrastructure-risk-management-program-cirmp-rules-2023::8(2) · s 8(2) Cyber and information security hazards: minimise the material risk and mitigate the impact →The RSE licensee must ensure at a minimum that its risk management framework covers all material risks to its business operations, both financial and non financial, having regard to the size, business mix and complexity of those operations.
SPS220-18 · Framework Coverage of All Material Risks →The program must treat as material risks: a stoppage or major slowdown of the asset's function for an unmanageable period; an impairment that prejudices Australia's social or economic stability or national security;
telecommunications-sector-security-reforms-tssr::TSRMP-8 · TSRMP Rules s 8: the nine specified material risks →The insurer's enterprise risk management framework must provide for identifying all reasonably foreseeable and relevant material risks and their interdependencies, for risk and capital management.
iais-insurance-core-principles-icps::16.1 · 16.1 ERM identifies all reasonably foreseeable material risks and their interdependencies →Front line units, accountable to the CEO and the board for assessing and managing the risks of their activities, should, alone or with a unit that assists them, assess on an ongoing basis the material risks of its activities and use those assessments to fulfil...
occ-heightened-standards-12-cfr-part-30-appendix-d::II.C.1.(a) · II.C.1.(a) Front line units: Ongoing assessment of material risks →Questions people ask about material risk
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