A disciplined process with emphasis on simplicity and flexibility yields a highly effective process that is dynamic and can quickly adapt to changing market conditions.  An effective risk management program includes both a strategic and a tactical component.  The strategic component of risk management begins with a set of risk management principles that includes management acknowledgement and support, recognition that risk management is an inexact science, and recognition that a disciplined approach yields significant value to the organization.  Another key principle is recognition that, even though risk management is an inexact science, the risk management process must be disciplined and systematic.  A disciplined and systematic risk management program facilitates continual improvement and creates true value for the organization.  A disciplined and systematic risk management approach also helps avoid overspending on risk management.  It doesn’t make sense to spend $100,000 to treat a risk with a $20,000 impact. A disciplined risk management approach will quickly identify cases where the cost to treat a risk exceeds the cost of the impact and can divert the remaining effort to higher priority risks.