Which document typically outlines the risk management policies of an organization?

The risk management plan is the document that specifically outlines the risk management policies of an organization. This plan serves as a comprehensive framework that articulates the organization's approach to identifying, assessing, managing, and monitoring risks. It includes details such as risk tolerance levels, roles and responsibilities related to risk management, the methodologies for risk assessment, and procedures for handling and mitigating risks.

Having a dedicated risk management plan ensures that the organization has a structured methodology in place, facilitating consistent application of risk management practices across all departments and functions. It acts as a guiding document for stakeholders, ensuring that everyone understands how risks are to be managed and mitigated in alignment with the organization's objectives and regulatory requirements.

On the other hand, while an organizational handbook may include various policies and procedures, it is broader in scope and not exclusively focused on risk management. A strategic plan outlines the organization's long-term goals and objectives but does not provide the specific risk management policies. A compliance report focuses on adherence to regulations and laws rather than detailing how to manage risks effectively. Thus, the risk management plan stands out as the correct choice for outlining an organization’s specific risk management policies.