10 Risk Management Frameworks You Need to Know in 2025

Risk is everywhere. Markets shift. Cyber threats grow. Regulations change. If you don’t manage these risks well, your business can fall behind — fast.

That’s where risk management frameworks come in.

In this guide, I’ll walk you through the 10 most important risk frameworks for 2025.

I’ll explain how they work, why they matter, and how to pick the right one for your business.

Let’s dive in.

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What Is a Risk Management Framework?

A risk management framework is a step-by-step guide your business uses to spot, assess, and respond to risks.

It gives everyone on your team a shared way of thinking — and acting — when things go wrong.

Here’s why that matters:

• Risks don’t wait. Cyberattacks, compliance issues, or supply chain delays can hit fast.
• A framework helps you prepare — and act — before a problem grows.
• With the right approach, you don’t just protect your business. You find new ways to grow.

The best frameworks are flexible.

They adapt as threats change and as your company grows. In today’s world of AI, cloud computing, and blockchain, that flexibility is critical.

For a deeper dive into understanding risk management, check out our full guide.

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Key Risk Trends in 2025

Before we get into the frameworks, here’s what I’m seeing in the field right now:

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1. Risk is becoming a core business strategy

It’s not just about defense anymore. Businesses are using risk management to make better decisions, protect value, and even create new opportunities.

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2. AI and analytics are changing the game

Machine learning tools can now find risky patterns in your data before humans spot them. Blockchain is also helping secure supply chains and increase transparency.

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3. Trust is the new currency

Stakeholders want clarity. Risk reporting is becoming a key part of company storytelling. The more open you are, the more trust you earn.

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4. Ethics are in the spotlight

As ESG and social responsibility gain ground, businesses are aligning their risk strategies with values. Doing the right thing is now a risk strategy too.

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10 Risk Management Frameworks You Should Know

The top risk management frameworks in 2025 include COSO ERM, ISO 31000, ISO 27005, FAIR, NIST RMF, NIST AI RMF, COBIT 2019, OCTAVE, TARA, and CIS Controls.

These frameworks help businesses identify, assess, and manage risks across areas like cybersecurity, compliance, strategy, and operations.

Each one suits different industries, team sizes, and risk profiles.

Let’s take a closer look at how each framework works — and how to choose the right one for your business.

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1. COSO Enterprise Risk Management (COSO ERM)

COSO ERM helps you take a big-picture view of risk. It’s built for organizations that want to tie risk management directly to strategy, performance, and decision-making.

Instead of treating risk as a side task, COSO ERM weaves it into your culture, planning, and daily operations. It’s especially useful in highly regulated or complex business environments.

Use COSO ERM if you want to:

• Align risk management with business goals and strategy
• Build a culture of accountability and governance
• Evaluate risks across departments and decision levels
• Improve board-level and executive risk visibility
• Strengthen internal controls and compliance posture

Example: A global financial services firm uses COSO ERM to unify its approach to operational, regulatory, and market risk. By aligning its enterprise risk practices with strategic objectives, the executive team identifies emerging threats early — and makes smarter investment decisions with confidence.

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2. ISO 31000

ISO 31000 is a flexible, internationally recognized standard that gives you a clear structure to manage any type of risk.

It’s not prescriptive — instead, it offers guiding principles that you can adapt to your industry, size, and business model.

It’s perfect if you want to build a risk-aware culture without getting bogged down in complexity or red tape.

Use ISO 31000 if you want to:

• Embed risk thinking into day-to-day decision-making
• Apply a consistent approach across all types of risk
• Build a framework that scales as your business grows
• Encourage ownership and accountability across teams
• Align with global standards without rigid checklists

Example: A fast-growing logistics company adopts ISO 31000 to manage supply chain disruptions, market fluctuations, and operational risks. Instead of reacting to problems, they now plan ahead — with cross-functional teams regularly assessing and adjusting their risk priorities.

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3. ISO 27005

This one focuses on information security. ISO 27005 gives you detailed steps for managing cyber risks — especially if you’re already using ISO 27001.

It helps you structure your risk assessments, decide what’s worth protecting, and apply the right controls. It’s clear, methodical, and tailored for protecting digital assets.

Use ISO 27005 if you want to:

• Strengthen your information security program
• Run clear, structured risk assessments
• Protect critical data and digital assets
• Complement ISO 27001 with deeper risk guidance
• Build a consistent approach to cyber risk treatment

Example: A healthtech startup handling patient data uses ISO 27005 to identify security gaps in its cloud infrastructure. By applying ISO’s step-by-step risk analysis, they prioritize threats, select targeted controls, and stay aligned with ISO 27001 — helping them win new clients and meet audit requirements.

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4. FAIR (Factor Analysis of Information Risk)

FAIR flips the script on traditional risk frameworks. Instead of vague ratings like “high” or “medium,” it quantifies risk in dollars.

That makes it a game-changer for communicating with executives and prioritizing security investments.

FAIR breaks down complex cyber risks into measurable parts — helping you compare options and justify spend with real financial logic.

Use FAIR if you want to:

• Quantify cyber risks in business and financial terms
• Translate technical threats into executive language
• Make smarter, cost-benefit-driven security decisions
• Model risk scenarios with real-world impact
• Align IT risk with enterprise risk appetite and tolerance

Example: A fintech company uses FAIR to model the financial impact of a ransomware attack. By showing the potential $2.5M loss, they justify a $200K investment in advanced backups — and the board signs off without hesitation.

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5. NIST Risk Management Framework (NIST RMF)

NIST Risk Management Framework (NIST RMF) gives you a detailed, step-by-step process to manage cybersecurity and privacy risks across your systems.

Originally built for U.S. federal agencies, it’s now widely used by businesses that operate in regulated industries or handle sensitive data.

It helps you choose, implement, and monitor the right security controls from day one.

Use NIST RMF if you want to:

• Follow a structured approach to cybersecurity risk
• Align with U.S. government standards like FISMA
• Build secure systems from development to deployment
• Tailor controls to your specific environment
• Ensure continuous monitoring and risk reassessment

Example: A healthcare provider managing electronic patient records adopts NIST RMF to comply with HIPAA and protect sensitive data. By embedding security controls throughout the system lifecycle, they reduce breach risk and pass third-party audits with confidence.

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6. NIST AI Risk Management Framework (NIST AI RMF)

As AI adoption grows, so do the risks — from bias and privacy violations to unreliable outputs.

The NIST AI Risk Management Framework (AI RMF)  helps you manage those risks with a focus on trustworthy, transparent, and secure AI.

It’s designed to guide organizations of any size through building responsible AI systems that align with human values and legal expectations.

Use NIST AI RMF if you want to:

• Build and deploy ethical, secure, and fair AI systems
• Map out AI risks across the development lifecycle
• Establish clear governance for AI use and oversight
• Meet growing regulatory and societal expectations
• Continuously evaluate and improve your AI models

Example: A financial services firm uses the NIST AI RMF to audit its loan approval algorithm. After identifying potential bias in training data, the team retrains the model with more inclusive data sets and documents the changes — improving fairness and reducing regulatory risk.

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7. COBIT 2019

COBIT 2019 is all about aligning IT with business goals — without losing control.

It’s a framework built for IT governance, helping you manage risk, security, and compliance across your tech environment.

COBIT is detailed, structured, and ideal for organizations that want tight oversight over their digital operations.

Use COBIT 2019 if you want to:

• Bridge the gap between IT and business strategy
• Strengthen your IT governance and internal controls
• Support audits and compliance (e.g. ISO 27001)
• Assign clear accountability for technology risk
• Standardize IT policies, metrics, and performance

Example: A global insurance company adopts COBIT to get a grip on sprawling IT systems across regions. With COBIT’s governance structure, they define roles, measure performance, and reduce compliance gaps — all while keeping tech aligned with enterprise goals.

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8. OCTAVE (Operationally Critical Threat, Asset, and Vulnerability Evaluation)

OCTAVE is a structured, asset-based risk framework that helps you dig deep into what matters most — your critical systems and data.

Instead of focusing only on threats, it starts with what you need to protect.

It’s ideal for organizations that want a hands-on, team-driven way to evaluate information security risks.

Use OCTAVE if you want to:

• Focus risk analysis around your most valuable assets
• Understand threats in your specific environment
• Engage cross-functional teams in risk assessments
• Take a practical, workshop-style approach
• Build security strategies from the ground up

Example: A university IT team uses OCTAVE to evaluate the risk of student data exposure. They map critical systems, identify insider threats, and design tailored mitigation plans — all without needing expensive external tools or consultants.

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9. TARA (Threat Assessment and Remediation Analysis)

TARA, developed by MITRE, helps you zero in on your most dangerous cyber threats — and match them with the most effective defenses.

It’s threat-driven, tactical, and grounded in real-world attack data. TARA is a smart choice for organizations facing advanced threats or operating in sensitive sectors.

Use TARA if you want to:

• Identify and prioritize threats based on attacker behavior
• Match threats with high-impact, low-cost mitigations
• Strengthen system architecture with threat modeling
• Focus on real-world exposures instead of theory
• Build risk strategies around what matters most

Example: An aerospace defense contractor uses TARA to evaluate insider threats and foreign attack vectors. By applying TARA’s threat-agent methodology, they focus on exposures that could cripple operations — and put protections in place before they’re targeted.

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10. CIS Controls (Center for Internet Security)

The CIS Controls are a practical, prioritized set of actions that help you strengthen cybersecurity fast.

Designed for simplicity and impact, they’re perfect for teams who want to get secure without getting overwhelmed. The controls are grouped into three tiers (basic, foundational, organizational) so you can scale as you grow.

Use CIS Controls if you want to:

• Improve cybersecurity posture quickly and affordably
• Follow a clear, step-by-step path to risk reduction
• Start small and scale based on your resources
• Focus on the highest-impact security actions
• Strengthen defenses without heavy technical lift

Example: A 50-person SaaS startup uses CIS Controls to secure its cloud-based infrastructure. By focusing first on basic hygiene — like asset inventory and patch management — they reduce their attack surface by 70% in six months, all without hiring a full-time security team.

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The Top 10 Risk Management Frameworks Compared

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How to Choose the Right Framework for Your Business

I’ve worked with companies of all sizes, and here’s what I’ve learned:

• Know your risks: Are you in finance, healthcare, tech? Are you worried about data breaches, fraud, or operational breakdowns? Match the framework to the threats you face.
• Think about your team: Some frameworks are resource-heavy. Others are nimble. Pick one that fits how your people work — and how much time and budget you have.
• Plan for growth: Your risk approach should grow with your business. If you’re just getting started with ISO, go with ISO 31000 or ISO 27005. If you’re a U.S. federal contractor, NIST RMF may be required.

Choose one that integrates with the tools and standards you already use.

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Make Risk Part of Your Strategy — Not an Afterthought

Risk doesn’t live in a spreadsheet. It lives in every decision your business makes.

So bring it to the table. During planning. During hiring. During product launches. Make risk management part of how you think, not just a box you check.

Here’s how I do it:

• Involve leaders from across the business — not just security and compliance
• Use tools that surface real-time data and insights
• Update your risk strategies regularly to keep pace with change
• Train your team so they can act early and with confidence

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How Technology Can Help

Today’s tools make risk management faster and smarter:

• AI and machine learning flag problems before they happen
• Cloud platforms keep teams connected and informed
• Blockchain boosts transparency and trust in your data

With the right tools, risk stops being a problem — and becomes an opportunity.

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Common Mistakes to Avoid

I’ve seen companies trip up when they:

• Overcomplicate things. Keep it simple and actionable.
• Skip training. People can’t follow what they don’t understand.
• Forget to talk. Risk management is a team sport.
• Ignore feedback. Your frontline employees see risks first. Listen to them.

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Conclusion

In today’s world, risk isn’t a roadblock—it’s your roadmap. Miss it, and you're reacting too late. Master it, and you're leading with clarity, control, and confidence.

Here’s how to get ahead—every time:

• 🧭 Pick your fit: ISO 31000 for flexibility, COSO for strategy, NIST for structure—there’s no one-size-fits-all
• ⚙️ Embed risk in your DNA: From hiring to product launches, bring risk to every decision
• 📊 Quantify the impact: Use FAIR to put a price tag on threats—and back your decisions with data
• 🤝 Train every team: Risk isn’t just for compliance. Make it everyone’s responsibility
• 🚀 Use tech to scale: AI, automation, and dashboards help you stay sharp without drowning in data

2025 isn’t about avoiding risk—it’s about using it to lead.

👉 Want to turn frameworks into action? Subscribe to the GRCMana Newsletter for expert tips, templates, and tools that make risk your biggest strategic edge.

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