Communication and Coordination

Communication and coordinate is important for identification, measurement and optimizing the controls applied to reducing risks, as well as informing personnel throughout the organization so they understand decisions that are proposed and can, if they deem necessary, provide feedback to revisit some of the decisions.

Members of the board of directors and C-level management for example, have a need to communicate their judgments about the relative importance of the organization’s objectives that are subject to loss. These judgments in turn play a significant role in the measurement of specific risks and the selection of a portfolio of controls to reduce the risks. Additionally, communication of risk tolerance versus the amount to in invest in risk reduction is essential in deciding on the optimal risk management plan.