Risk Management

Risk management strategy is dependent on the inherent risk of the business, as well as the size of the business but well executed risk management follows the 5 steps in the lifecycle:

• Step 1: Identify Risk – whether through analysis or normal business operations, risk is present and needs to be formally identified and recorded.
• Step 2: Analyze the Risk – execute the process to determine the extent of the risk as it applies to the business.
• Step 3: Evaluate/Rank the Risk – using a custom made or widely available risk classification framework, assign a rank or level of risk that will drive the treatment of the risk.
• Step 4: Treat the Risk – based on the risk ranking in step 3 determine if the risk is to be avoided, mitigated/reduced or accepted.
• Step 5: Monitor and report the Risk – when risks are reduced or accepted, regular monitoring and reporting to maintain transparency, both internally and externally.