What is risk management?
Risk management is the process of identifying, assessing, and controlling risks that may negatively affect an organization, project, or activity.
Main steps:
🔵 Risk identification: Identifying potential risks that may arise during the activity. This can include both external and internal risks.
🔵 Risk assessment: Determining the likelihood of each risk occurring and its potential impact on the activity. This can be a quantitative assessment (e.g., financial losses) or qualitative (e.g., reputational risks).
🔵 Developing risk management strategies: Determining ways to minimize the likelihood and impact of risks. This includes:
🔵 Monitoring and controlling risks: Continuously observing risks and the effectiveness of measures taken to manage them. Making adjustments to risk management strategies as necessary.
🔵 Documentation and reporting: Keeping records of identified risks, measures taken, and their results. This helps in subsequent analysis and improvement of the risk management process.