Risk Management Process

1. Risk management process

2. What IS Risk management? • Risk management is a process of identifying, analyze and solve the risk that are affecting the earning, values and capitals of an organization. These risks can arise from anywhere like strategic management errors, accidents, natural disasters and financial uncertainty etc.

3. IT security risks and the risk management strategies and systems to eliminate them have become a top priority of all digitalized companies. A risk management system includes the risks identification process and, controlling threats to the digital assets of the company.

4. Every business have the risks that can make a company fall in financial crises or cause it to permanently close. Risk management enables organizations to be ready for unexpected by minimizing risks and cost before they happen.

5. Importanceof risk management • By implementing a risk management plan and consider various potential risks before they happen, an organization can save money and protect and improve their future. Other important benefits of risk management include: • Creates a safe and secure work environment for all staff and customers. • Increases the stability of business operations while also decreasing legal liability. • Provides protection from events that are detrimental to both the company and the environment. • Protects all involved people and assets from potential harm. • Helps establish the organization's insurance needs in order to save on unnecessary premiums.

6. Risk management strategies and processes • All risk management plans follow some steps that combine to make up the overall risk management process: • Establish Context: Understand the circumstances under which the whole process will take place.The criteria for the evaluation of the risk must also established and structure of the analysis must also be defined.

7. Risk Identification: The organization identifies and defined the potential risks that may have negative influence on the company process. • Risk Analysis: When the risk is identified by the company the next step is to analyze the risk. The goal of risk analysis is to understand every specific factor of the risk and find the ways that how It can influence the company’s process and working,

8. Risk Assessment and Evaluation: After analysis the risk is further evaluated determining the risk’s overall. The company can then make decisions on whether the risk is acceptable and whether the company is willing to take it on based on its risk appetite.

9. Risk Mitigation: In this step the organizations accesses their highest ranked risks and then develops plans to eliminate them using specific risk controls.  These plans include risk mitigation processes, risk prevention tactics and contingency plans in the event the risk comes to fruition.

10. Risk Monitoring: This is a part of mitigation plan that includes to find risk and creating plan to continuously monitor and track new risks. The whole risk management process must be reviewed and updated accordingly. • Communicate and Consult: The internal and external stakeholders must be in communication and consultation to each step, by organizing meetings, of risk management process.