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    What Is The Risk Management Process Netecha Maievska Sokol

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    Yelyzaveta Maievska
    Risk management process

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    What Is The Risk Management Process Netecha Maievska Sokol

    Uploaded by

    Yelyzaveta Maievska
    23 views8 pages
    Risk management process

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    What is the Risk Management Process netecha maievska sokol

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    Risk management process

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    23 views8 pages

    What Is The Risk Management Process Netecha Maievska Sokol

    Uploaded by

    Yelyzaveta Maievska
    Risk management process

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 8

    MAIEVSKA YELYZAVETA

    MAKSYM NETECHA
    STANISLAV SOKOL

    What is the Risk


    Management
    Process?
    Risk Management
    Process Definition
    In business, risk management is defined as the process of
    identifying, monitoring and managing potential risks in
    order to minimize the negative impact they may have on an
    organization. Examples of potential risks include security
    breaches, data loss, cyberattacks, system failures and
    natural disasters. An effective risk management process
    will help identify which risks pose the biggest threat to an
    organization and provide guidelines for handling them.
    Risk Management Structures
    Risk management structures are tailored to do more than just point out existing
    risks. A good risk management structure should also calculate the uncertainties
    and predict their influence on a business. Consequently, the result is a choice
    between accepting risks or rejecting them. Acceptance or rejection of risks is
    dependent on the tolerance levels that a business has already defined for itself.
    If a business sets up risk management as a disciplined and continuous process
    for the purpose of identifying and resolving risks, then the risk management
    structures can be used to support other risk mitigation systems. They include
    planning, organization, cost control, and budgeting. In such a case, the business
    will not usually experience many surprises, because the focus is on proactive risk
    management.
    The 3 Steps of
    Risk
    Management
    The risk management process consists of
    three parts: risk assessment and analysis, risk
    evaluation and risk treatment. Below, we delve
    further into the three components of risk
    management and explain what you can do to
    simplify the process.
    1. Risk Assessment
    & Analysis
    The first step of the risk management process is called the
    risk assessment and analysis stage. A risk assessment
    evaluates an organization’s exposure to uncertain events
    that could impact its day-to-day operations and estimates
    the damage those events could have on an organization’s
    revenue and reputation.
    Effectively assessing and analyzing an organization’s risks
    helps protect assets, improve decision making and optimize
    operational efficiency across the board to save money, time,
    and resources.
    2. Risk Evaluation
    After the risk assessment/analysis has been completed, a
    risk evaluation should take place. A risk evaluation compares
    estimated risks against risk criteria that the organization has
    already established. Risk criteria can include associated
    costs and benefits, socio-economic factors, legal
    requirements, and system malfunctions.
    3. Risk Treatment &
    Response
    The last step in the risk management process is risk treatment and
    response. Risk treatment is the implementation of policies and
    procedures that will help avoid or minimize risks. Risk treatment
    also extends to risk transfer and risk financing.
    It is important to note that risk management is an ongoing process
    and does not end once risks have been identified and mitigated. An
    organization’s risk management policies should be revisited every
    year to ensure policies are up-to-date and relevant.
    Our business ventures
    encounter many risks
    that can affect their
    survival and growth. As a

    Summary
    result, it is important to
    understand the basic
    principles of risk
    management and how
    they can be used to help
    mitigate the effects of
    risks on business
    entities.

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