I need help in answering the following questions:
What is the value of a risk assessment? How can risk mitigation strategies be used effectively to prevent a risk from occurring? How can contingency planning be a part of the strategic planning process?
What is the value of a risk assessment?
The object of risk assessment is to identify and quantify the risks involved in any activity, and totake appropriate action to reduce or eliminate any obvious or potentially harmful elements of it. Basically, Risk assessment is the first process in the risk management methodology. Organizations use risk assessment to determine the extent of the potential threat and the risk associated with various processes and activities in the organization. The output of this process helps to identify appropriate controls for reducing or eliminating risk during the risk mitigation process.
Therefore, the key value of risk assessment is that it provides a firm background and understanding to the risk professionals in the organization about the potential risks, so that they can develop a strong risk mitigation strategy for the organization. Without effective risk assessment, a successful risk mitigation plan cannot be developed.
What is the value of a risk assessment? How can risk mitigation strategies be used effectively to prevent a risk from occurring?