This essential guide briefly and concisely explains the challenges that risk managers face when establishing and operating a modern risk management (RM) system. Lessons learned and practical tips help the reader avoid the biggest pitfalls during implementation and successfully transition from traditional RM to a modern approach. It begins by clarifying what is meant by modern risk management (RM) and where the key differences from traditional RM lie. A brief comparison of the two main RM frameworks, COSO ERM and ISO 31000, is then made, discussing their suitability for modern RM. The core content of the essential focuses on ten important steps for successful RM. A summary of the key points and a brief outlook conclude the work.