IRM Workflow

  

1. ServiceNow IRM Overview

Definition:
ServiceNow IRM helps organizations identify, assess, and monitor risks and compliance across IT and business processes. It integrates risk, audit, and compliance management into a single platform.

Key Modules in IRM:

  • Policy and Compliance Management (PCM) – Track policies, standards, and compliance controls.

  • Risk Management – Identify, assess, and mitigate risks.

  • Third Party Risk Management (TPRM) – Manage vendor risks.

  • Audit Management – Plan and manage audits.

  • Issue Management – Track issues arising from risks or audits.

  • Continuous Monitoring – Monitor controls continuously.


2. IRM Lifecycle

The IRM lifecycle represents how risks and compliance are managed from identification to closure:

  1. Identify

    • Identify business assets, processes, and risks.

    • Tools: Risk register, TPRM assessments.

  2. Assess

    • Evaluate risks based on impact and likelihood.

    • Methods: Inherent vs residual risk, scoring, control effectiveness.

  3. Respond / Mitigate

    • Implement controls or action plans to reduce risk.

    • Use workflows, task assignments, and remediation plans.

  4. Monitor / Review

    • Continuously track risk status, control effectiveness, and compliance.

    • Automated dashboards, notifications, and reports.

  5. Report / Close

    • Generate reports for stakeholders.

    • Close risks or issues when resolved.


3. IRM Configuration Steps (Implementation)

Below are steps typically performed by a ServiceNow IRM developer/admin:

StepDescriptionTable Names (backend)
1. Activate PluginsEnable IRM, PCM, Risk, TPRM, Audit modulessys_plugins
2. Configure Risk Categories & SubcategoriesDefine categories to classify riskssn_risk_categorysn_risk_sub_category
3. Configure Risk AssessmentsSetup assessment templates for riskssn_risk_assessment_templatesn_risk_assessment
4. Configure ControlsDefine controls and map to riskssn_compliance_control
5. Configure Policies & ComplianceCreate policies, standards, and assign controlssn_compliance_policysn_compliance_standard
6. Configure Third Party/Vendor RiskSetup vendor records, questionnaires, and assessmentssn_tprm_vendorsn_tprm_assessment
7. Configure Risk ScoringSetup risk scoring criteria (impact, likelihood, risk score formula)sn_risk_score
8. Configure Workflows & TasksAutomate risk mitigation, issue managementwf_workflowsn_risk_task
9. Configure Dashboards & ReportsCreate IRM dashboards for risk/compliance reportingpa_dashboardspa_indicators
10. Configure NotificationsAlerts for risk changes, issue assignmentssysevent_email_action

4. Common IRM Interview Q&A (2-Year Experience Level)

Q1: What is the difference between Risk and Issue in ServiceNow IRM?
A: Risk is a potential event that can affect business objectives. Issue is an actual event that has occurred and requires remediation.

Q2: What is a Control in IRM?
A: Control is a measure implemented to reduce risk likelihood or impact. Controls are linked to policies and risks.

Q3: How do you configure a Risk Assessment?

  • Navigate to Risk > Assessments.

  • Select a Risk Assessment Template.

  • Define assessment questions.

  • Assign to risk owners.

  • Automate notifications and scoring.

Q4: Explain Residual vs Inherent Risk.

  • Inherent Risk: Risk level without controls.

  • Residual Risk: Risk level after implementing controls.

Q5: How do you link a Policy to a Control?

  • Open the policy record → Related Controls → Add existing control(s) from sn_compliance_control.

Q6: How is TPRM different from standard Risk Management?

  • TPRM focuses on third-party/vendor risks.

  • Includes vendor assessments, questionnaires, and mitigation plans.

  • Risk Management can include internal and operational risks.

Q7: What tables are most used in IRM?

  • sn_risksn_risk_categorysn_compliance_controlsn_compliance_policysn_tprm_vendorsn_audit_tasksn_risk_assessment.

Q8: How do you automate risk mitigation tasks?

  • Create a workflow → Assign task to risk owner → Configure SLA/notifications → Update risk upon completion.

Q9: How do you measure risk effectiveness?

  • Track risk scores (likelihood × impact)

  • Monitor control effectiveness (effective, partially effective, ineffective)

  • Continuous monitoring dashboards.

Q10: What are Key Dashboards in IRM?

  • Risk Heatmap

  • Control Compliance Status

  • Audit Findings

  • Vendor Risk Status

  • Risk Aging/Trends

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IRM Workflow Automation & Dashboard – Key Points


1. IRM Workflow Automation

Key Concepts

  • Automates repetitive risk management tasks: risk creation, risk scoring, risk acceptance, notifications, and remediation assignments.

  • Tools in ServiceNow:

    • Flow Designer: Automates risk workflows across IRM modules (Risk, Control, Policy, Issue).

    • Business Rules: Server-side automation for scoring or status updates.

    • Scheduled Jobs: Periodic risk assessments, control testing, or risk review reminders.

    • Notifications & Alerts: Automatic emails for overdue actions or high-risk alerts.

Common Automated Tasks

  1. Risk Scoring: Auto-calculate inherent and residual risk when a risk record is created.

  2. Issue/Control Reminders: Notify owners of overdue issues or control tests.

  3. High-Risk Escalation: Automatically escalate high-risk items to risk manager.

  4. Policy Compliance Checks: Automatically check if risks align with policies.

  5. Workflow for Risk Acceptance: Route risks for approval and document acceptance in IRM.

Tables & Fields

TaskTableKey Fields
Risk Scoring Automationsn_riskrisk_scoreinherent_riskresidual_riskrisk_status
Issue / Control Reminderssn_risk_issuesn_risk_controlstatusownerdue_date
Risk Acceptance Workflowsn_risk_acceptanceriskapproverstatus
Risk Lifecycle Updatessn_riskrisk_statusrisk_ownerlast_reviewed

Tricky Workflow Interview Q&A

Q1: How do you automate risk scoring in IRM?
A:

  • Use Business Rule or Flow Designer triggered when a risk is created or updated.

  • Formula example: residual_risk = inherent_risk × (1 – control_effectiveness)

  • Update risk_level automatically based on thresholds.

  • Tip: Mention scheduled re-assessment for ongoing monitoring.

Q2: How do you manage overdue risk remediation tasks?
A:

  • Flow Designer checks due_date in sn_risk_issue.

  • Send email alerts to risk owner, manager, and escalates after SLA.

  • Add audit note in sn_risk_issue for compliance tracking.

Q3: Can workflows in IRM integrate with TPRM or CMDB?
A:

  • Yes: High-risk vendors in TPRM → IRM risk register (sn_risk).

  • Risks associated with critical CIs (cmdb_ci) trigger workflows to asset owners.

  • Shows enterprise-level risk aggregation across systems.


2. Dashboard, KPI & KRI

Key Concepts

  • KPIs (Key Performance Indicators): Track effectiveness of IRM processes.

  • KRIs (Key Risk Indicators): Track risk exposure and threat trends.

  • Widgets: Visualize metrics, trends, and alerts in dashboards.

Common KPIs & KRIs in IRM

TypeMetricTable/FieldsPurpose
KPI% Risks Reviewed On Timesn_risk → last_reviewedreview_due_dateEnsures timely risk management
KPI% Issues Resolved On Timesn_risk_issue → due_datestatusTracks risk mitigation efficiency
KRI# High-Risk Itemssn_risk → risk_levelTracks enterprise risk exposure
KRIOverdue Control Testssn_risk_control → statusdue_dateMeasures compliance & control effectiveness
KRIPending Risk Acceptancessn_risk_acceptance → statusTracks unapproved risks

Widgets for IRM Dashboards

  • Pie Chart: Risk distribution by level (High, Medium, Low)

  • Bar Chart: Overdue issues or control tests per department

  • List/Grid Widget: Pending risk acceptance or remediation tasks

  • KPI Indicator: % risks reviewed on time

  • Trend Chart / Heatmap: Track risk exposure over time or by business unit


Tricky Dashboard / KPI Q&A

Q4: What is the difference between KPI and KRI in IRM?
A:

  • KPI: Measures process efficiency (e.g., % risk reviews on time).

  • KRI: Measures actual risk exposure (e.g., # high-risk risks overdue).

  • Trick: Always link KRI to business impact or regulatory compliance.

Q5: How do you prioritize risk remediation if multiple high-risk issues exist?
A:

  1. Sort by risk_level × criticality (sn_risk + sn_risk_issue).

  2. Assign remediation tasks to responsible owners.

  3. Escalate overdue items via workflow.

  4. Monitor completion via dashboard KRI widgets.

Q6: Scenario: “Several high-risk risks are not reviewed, and dashboards show overdue. What steps would you take?”
A:

  • Identify the risk owners → check sn_risk.last_reviewed.

  • Trigger automated reminder notifications.

  • Escalate to risk manager if overdue beyond SLA.

  • Document audit note for compliance.

  • Update dashboard once action taken.

Q7: How do you ensure dashboards always reflect real-time data?

  • Use Performance Analytics with scheduled refreshes.

  • Use real-time widgets querying current risk and issue records.

  • Customize dashboards for roles: Risk Officer, Audit, Compliance, and Management.


Quick Daily-Life Tricks for IRM Interviews

  • Always link automation → dashboards → KRIs/KPIs → risk mitigation.

  • Use tables and fields examples: sn_risksn_risk_issuesn_risk_controlsn_risk_acceptance.

  • Scenario-based Qs test how you prioritize high-risk risks, handle overdue issues, or automate alerts.

  • Know common dashboard widgets and how KPIs/KRIs differ.

  • Show understanding of TPRM integrationCMDB integration, and IRM lifecycle flow.


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Category 1: Risk Identification & Categorization

Q1: A business process has multiple dependencies across departments. How do you ensure all risks are identified?
A: Map the process end-to-end, identify assets, stakeholders, and dependencies, and use workshops/questionnaires to capture hidden risks.

Q2: You find a risk that could impact multiple business units. How do you categorize it?
A: Assign primary category based on the most affected unit but link to all impacted units using risk relationships.

Q3: A risk is detected but has no control assigned. What’s your approach?
A: Document the risk, assess its inherent impact and likelihood, and escalate to assign a mitigation control.

Q4: A new regulation affects multiple policies. How do you identify risks due to this?
A: Conduct a regulatory impact assessment linking policies, controls, and affected processes.

Q5: A risk shows low likelihood but high impact. How is it prioritized?
A: Prioritize using risk scoring (Impact × Likelihood). Even low probability/high impact risks require attention.


Category 2: Risk Assessment & Scoring

Q6: How do you handle a risk where multiple people provide conflicting impact scores?
A: Use a consensus approach, weighted scoring, or involve a risk committee for final assessment.

Q7: Residual risk score remains high even after control implementation. What would you do?
A: Reassess control effectiveness, implement additional controls, or escalate to management for acceptance.

Q8: A risk is detected mid-audit. How do you assess it quickly?
A: Use rapid assessment templates, assign to risk owner, and document preliminary impact/likelihood.

Q9: You notice risk scores vary between departments. What could be the reason?
A: Differences in perception, scoring methodology, or incomplete risk data. Standardize scoring criteria.

Q10: When is it acceptable to accept a risk without mitigation?
A: When residual risk is within risk appetite/tolerance or mitigation cost outweighs benefit.


Category 3: Control Mapping & Effectiveness

Q11: A control is partially effective against a risk. How do you reflect this?
A: Mark control effectiveness as “Partial” and consider additional mitigation or alternative controls.

Q12: One control maps to multiple risks. How do you monitor effectiveness?
A: Track control performance for all linked risks; update scores if the control fails any risk.

Q13: How do you handle obsolete controls?
A: Retire obsolete controls and update linked risks; document reason for audit trail.

Q14: A control fails testing. What’s your next step?
A: Trigger remediation tasks, update risk residual score, notify control owner.

Q15: Control testing is scheduled but evidence is missing. How do you proceed?
A: Escalate to control owner, document missing evidence, and update compliance dashboard.


Category 4: Advanced Risk Assessment Methodology

Q16: A risk is hard to quantify financially. How do you assess it?
A: Use qualitative scoring (High/Medium/Low) or scenario analysis with estimated impact ranges.

Q17: How do you perform risk aggregation across business units?
A: Aggregate risk scores using weighted average or cumulative scoring; present in risk heatmaps.

Q18: A risk has multiple potential causes. How do you document this?
A: Use root cause analysis and link multiple causes to the same risk record.

Q19: How do you deal with interdependent risks?
A: Use risk relationships in ServiceNow; assess cascading effects and combined impact.

Q20: How do you track emerging risks?
A: Monitor trend indicators, regulatory updates, and stakeholder inputs; add them as new risk records.


Category 5: Risk Treatment & Mitigation

Q21: A high residual risk cannot be fully mitigated. What is your approach?
A: Document mitigation plan, escalate for risk acceptance, and continuously monitor.

Q22: How do you prioritize multiple risks with similar scores?
A: Use additional criteria like risk velocity, regulatory requirement, or business impact.

Q23: A mitigation plan is delayed. What is your action?
A: Notify risk owner, update risk status, and escalate if necessary.

Q24: How do you ensure mitigation tasks are completed on time?
A: Use workflow automation, SLAs, reminders, and dashboards to track task completion.

Q25: How do you handle a risk when multiple mitigation options exist?
A: Evaluate cost-benefit, feasibility, and control effectiveness; select the best option.


Category 6: Risk Monitoring & Reporting

Q26: A risk has multiple owners. Who receives monitoring alerts?
A: All owners linked in the risk record; workflow ensures alerts are sent to all.

Q27: How do you detect if residual risk is increasing?
A: Monitor control failures, incidents, audit findings, and risk trends.

Q28: A report shows outdated risk data. How do you fix it?
A: Validate risk records, update scores, and refresh dashboards.

Q29: How do you measure risk appetite compliance?
A: Compare residual risk scores to predefined risk thresholds.

Q30: How do you communicate risk to executives?
A: Use heatmaps, trend charts, dashboards, and executive summary reports.


Category 7: TPRM / Third-Party Risk Scenarios

Q31: A vendor risk assessment is overdue. What action do you take?
A: Notify vendor manager, escalate to procurement, and update TPRM dashboard.

Q32: Vendor provides incomplete evidence for control testing.
A: Mark assessment as incomplete, escalate to vendor, and document gap.

Q33: A high-risk vendor is critical to operations. What’s the approach?
A: Implement risk mitigation plan, continuous monitoring, and business continuity review.

Q34: How do you handle duplicate vendor risk records?
A: Merge duplicates, update linked risks and assessments.

Q35: Vendor risk assessment shows conflicting risk scores from departments.
A: Align scoring methodology, reconcile differences, document final assessment.


Category 8: Scenario-Based Problem Solving

Q36: You receive a sudden regulatory audit with gaps in risk controls.
A: Prioritize high-impact gaps, assign mitigation tasks, document action plan, and escalate.

Q37: A risk owner disputes your scoring.
A: Review scoring criteria, present data, reach consensus, and update record.

Q38: Residual risk suddenly spikes due to a new incident.
A: Update risk score, trigger mitigation workflow, notify stakeholders.

Q39: A control is effective but not documented in the system.
A: Document control, link to associated risks, and schedule testing.

Q40: Multiple risks are interrelated and affect a project timeline.
A: Map dependencies, assess combined impact, update risk treatment plan.


Category 9: Process & Workflow Challenges

Q41: Automated workflow for risk mitigation fails.
A: Debug workflow, verify task assignment, re-run, and document issue.

Q42: Notifications are not sent to risk owners.
A: Check email actions, workflow triggers, user records, and SLA setup.

Q43: A risk record has inconsistent data across modules.
A: Identify data source, reconcile fields, update risk and related modules.

Q44: Multiple users update the same risk simultaneously.
A: Implement locking mechanism or update workflow to prevent conflicts.

Q45: How do you ensure risk data integrity?
A: Validate input, enforce mandatory fields, automate audits, and use reports.


Category 10: Advanced Methodology & Best Practices

Q46: How do you handle unknown or “emerging” risks?
A: Document as potential risks, monitor triggers, and periodically reassess.

Q47: How do you combine quantitative and qualitative risk scoring?
A: Use a hybrid scoring model with impact value + qualitative assessment.

Q48: How do you justify risk acceptance to management?
A: Provide risk score, mitigation costs, business impact, and risk appetite alignment.

Q49: How do you maintain audit readiness for risk records?
A: Ensure documentation, evidence, control linkage, timestamps, and approvals.

Q50: How do you improve risk assessment efficiency across departments?
A: Use templates, automated workflows, dashboards, training, and standardized scoring methodology

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