What does a risk management framework outline?

A risk management framework outlines processes, practices, and tools for managing risks, which is essential for identifying, assessing, and mitigating risks associated with various activities, including those related to payment systems. This framework provides a structured approach to risk management, ensuring that organizations can effectively address potential threats to their operations and financial stability.

By outlining specific processes, such as risk identification and assessment, the framework equips organizations with the methodologies necessary to evaluate their risk exposure. Additionally, it includes practices that guide the implementation of risk mitigation strategies and tools that support monitoring and reporting on risk management activities. The comprehensive nature of a risk management framework not only helps in compliance with regulations but also fosters a culture of risk awareness throughout the organization.

In contrast to the other choices, which focus on more specific aspects of payment systems or employee training, the core purpose of a risk management framework is to provide a holistic understanding of how to manage risks effectively across various domains.