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    Steps in the Risk Management Process

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    Identify and explain the steps in the risk management process. (Start with a determination of objectives.) Think of yourself as a risk manager and tell the class which step would be most important, and why.

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    https://brainmass.com/business/business-management/steps-risk-management-process-434095

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    The first step is the identification of objectives of the whole risk management exercise, ie, the main purpose of the whole exercise. The next step in risk management is the identification of risks. In this step, it is extremely important to involve all the organizational employees as well because their feedback and opinion is important to discover al types of risks. The second step is to assess the probability of occurrence of each risk. The third step is to assess the level of impact of each risks, ie, the severity of the impact as well as areas affected by the impact. Once these steps are complete, potential risk management strategies or alternative solutions need to be identified and the most effective risk mitigation strategy has to be selected based on the inputs received from team members and employees. Once the strategy is formulated, continuous monitoring of risk management activity is an essential and ongoing process.

    The most important step is the identification of risks because it sets up the platform for all other steps in the process. If certain risks will not be covered, the risk management activity will not turn out to be effective for the organization.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    © BrainMass Inc. brainmass.com December 24, 2021, 10:01 pm ad1c9bdddf>
    https://brainmass.com/business/business-management/steps-risk-management-process-434095

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