Over the past decade, risk and uncertainty have increasingly become major issues impacting business operations. Many organizations are raising awareness to minimize adverse consequences by implementing the risk management framework process which plays an important role in mitigating almost all categories of risks. According to Ward (2005), the objective of risk management is to improve a company's performance. In particular, the importance of the framework is to help senior management develop a sound risk management strategy and program. In order to effectively use risk management process frameworks, it is important to differentiate between risk and uncertainty. There is a tendency to argue that the COSO framework process and the SHAMPU framework are more appropriate to explain and further address issues of uncertainty and risk. This essay will first define risk and uncertainty. In the second section, it will introduce the process of two frameworks, namely COSO framework and SHAMPU framework. It will evaluate the performance of the two different alternative risk management frameworks in order to distinguish between different risks and uncertainties. Finally, an opinion will be expressed whether the effective use of risk management process frameworks depends on an ability to differentiate between risk and uncertainty. Ward (2005) points out that different people have different views on risks and uncertainties. Some people point out that risk can not only increase uncertainty, thereby leading to the difficulty of adverse effects, but can also create a higher level of uncertainty, thus leading to increased complexity. In terms of uncertainty, it can be classified into two...... middle of document ...... should be designed to reflect current dangers and unexpected future uncertainties. Additionally, the risk management process must be able to reflect costs and benefits before making the decision to eliminate threats. Finally, we can say that it can be difficult to clearly separate risk from uncertainty. Indeed, uncertainty is part of the scope of risk. In other words, risk and uncertainty are closely related to the context of risk management frameworks. Thus, it can be inferred that the effective use of risk management process frameworks, particularly the COSO and SHAMPU framework, seems unlikely to rely on the ability to differentiate between risk and uncertainty. Even if the framework is able to perfectly differentiate between risk and uncertainty, it seems certain that an organization can appropriately manage potential problems..