Which component directly involves implementing policies and procedures?

The component that directly involves implementing policies and procedures is risk mitigation. This stage of operational risk management is focused on putting into effect the strategies that have been developed to reduce or eliminate risks. It encompasses the creation and enforcement of specific policies and procedures designed to address identified risks effectively.

In this context, risk mitigation entails not just the design of solutions but their active application within the organization. Implementing policies and procedures is about translating strategic plans into operational actions, ensuring that the workforce understands their roles in managing risk, and that appropriate measures are in place to handle potential threats. This can include employee training, establishing reporting mechanisms, and creating guidelines that help prevent risk events or at least limit their impact.

On the other hand, risk identification involves recognizing and defining risks, risk assessment is about analyzing those risks to understand their potential impact, and risk monitoring entails continuously overseeing risk factors and the effectiveness of implemented controls. While all these components are vital in the risk management process, it is the risk mitigation phase that specifically focuses on the direct implementation of measures to manage risks through policies and procedures.