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Risk Process
An organisation faces many risk related issues. To mitigate those risks we have risk management techniques. These steps assist an organisation to mitigate risk and control it. The risk policy defines the risk and assists an organisation to reach its objective. The actions that can lead to a problem can be investigated. For example: high risk of computer viruses could be mitigated by installing antivirus software. A good risk management plan should involve steps to:
The risk process is as follows:
Step 1: Identify risk
Risk can be identified for the opportunity which can be identified by Market survey, Prospecting, Test marketing, Research and Development and Business impact analysis.
Risk which results in threats can be identified through the following techniques:
Step 2: Analyse risks
Step 3: Evaluate risks
? Mapping out: It decides whether the risks are acceptable or unacceptable. A risk that is resolute as acceptable should be monitored and regularly reviewed to make sure it remains acceptable. A risk considered unacceptable should be treated. In all scenarios the reasons for the assessment should be acknowledged and recorded to provide a record of the thinking that led to the decisions. Such records provide a useful background for future risk assessment.
Mapping out the following:
Step 4: Monitor and report
Communicating risks to the following members of the project:
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