An organization has decided to integrate IT risk with the enterprise risk management (ERM) framework. The FIRST step to enable this integration is to establish:

Establishing a common risk management taxonomy is the foundational first step for integrating IT risk with an enterprise risk management (ERM) framework. Without a shared vocabulary and classification system for risks, threats, vulnerabilities, and impacts, consistent identification, assessment, and reporting of risks across both IT and the wider enterprise would be impossible, leading to misunderstandings and ineffective management.

A common risk organization (e.g., a shared committee) is important for governance but cannot function effectively without a common understanding of what constitutes a risk, which the taxonomy provides.

Common Key Risk Indicators (KRIs) are metrics used to monitor risk, but they cannot be effectively defined or utilized until a common understanding and classification of risks (taxonomy) is in place.

Common risk mitigation strategies can only be developed effectively once risks are consistently identified, assessed, and understood using a shared taxonomy.