When planning to document an Integrated Risk Management (IRM) Policy, the Risk Management Department or RMD should ensure that it is all encompassing and really paves the way for long term risk management initiatives. Given below are some of the sections that might form part of the IRM policy. 1. Purpose and scope The purpose and scope identifies the reasons why this policy is created and what is the likely scope of the document. The scope should identify the business units, companies that it will encompass. Any companies excluded from the integration of risk efforts needs to be highlighted. 2. Selection of an appropriate ERM framework Next, selection of an appropriate ERM framework is important. the company can either select globally accepted frameworks such as COSO’s ERM Framework, or design their own ERM model. Either way, the objective of selecting the framework is to properly align all subsequent sections in some logical manner and to ensure that all aspects of IRM policy are covered. 3. Governance Governance plays a very important part of the IRM policy. Key roles, responsibilities of Board, Senior Management, Risk Management Committees, sub committees etc needs to be highlighted. The role of Audit Committee also forms part of this section. How will the risk reporting take place, whether centralised, decentralized or a hybrid etc needs to be documented. 4. Reference to other policies Since IRM Policy is kind of a parent policy, references to other risk policies will ensure that the concepts are well integrated and there is little duplication in policy framework. 5. Risk Identification and Risk Assessment Risk Identification and Risk Assessment methodologies are discussed in these sections. How are the risks identified, the methods used, how are these risks documented etc. 6. Aggregation of risks and economic capital calculations Integrated risk management means taking a one company view on impacts of all risks combined. To arrive at this one view, risk impacts are aggregated in some quantitative or qualitative manner. Economic capital required to offset risk impacts may be calculated for financial institutions. 7. Risk Monitoring, MIS Reporting, and the rest Finally, other sections include integrated risk reporting, monitoring, training, communications etc.