Risk Management
Risk management is the process of identifying, assessing, treating, and monitoring any negative events that affect a company's ability to operate (Preventing them or minimizing their harmful impact)
Steps
Identify
Identify all different types of events that have negative effects on the organization
- Qualitative
- Quantitative
- Generic
- Site-Specific
- Dynamic
Analyze
Find the likelihood of a negative event and its outcomes
- Impact Severity
- Time lost
- Potential Loss
Examine
Prioritize the negative event based on the organization's objectives (Which risks need t ob addressed first)
Treat
Starting from high to low randed negative events, choose appropriate remediation measures to bring the risk down to a manageable level or avoid it (Dispatch the treatment plan)
- Accepting
- Avoiding
- Controlling
- Transferring
Monitoring
Keep an eye on the risk to ensure everything goes as it should; if not, repeat the risk management process (Ongoing monitoring helps improve the efficiency of the mitigation process )
ID
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