The risk management process involves several steps that help identify and manage risks that could negatively impact the business. These steps typically include the following:
Risk identification: This involves identifying risks that could potentially harm the business.
Risk analysis: In this step, the probability and potential consequences of each identified risk are evaluated.
Risk assessment: Based on the risk analysis, the extent of the risk is assessed as a combination of probability and consequence.
Risk response: Once the risks have been assessed, the organization can decide to accept the risk, avoid the risk, or mitigate the risk by implementing control measures.
Risk monitoring and review: The risk management process is ongoing and should be continuously monitored and reviewed to identify new risks or changes to existing risks.