The Risk Management Process
A Systematic Approach to Managing Risk
Risk management follows a structured process that begins with identifying risks and continues through assessment, response, monitoring, and continuous improvement.
- Identify risks.
- Assess likelihood and impact.
- Prioritize significant risks.
- Develop risk responses.
- Implement controls.
- Monitor and review outcomes.
Note
Risk management is iterative because new risks emerge as business conditions change.
Summary
An organized risk management process improves consistency, accountability, and organizational preparedness.