Risk Management Processes

Continuous and disciplined risk management processes help manage uncertainty and enable synchronized recognition, evaluation and response to a broad range of risks. Risk management processes reduce the probability and impact of negative events or conditions and, at the same time, take advantage of any potential opportunities. To ensure successful organization-wide adoption, risk management processes have to be simple, practical and easy to implement. Viewing risk management as a series of systematic, interdependent and iterative processes is a prerequisite for setting organizational priorities and the development of a comprehensive risk management program. It is important to continually reassess initial assumptions about loss exposures, balance the needs and expectations of key stakeholders and make adjustments to the risk response strategies as required. Fundamental risk management processes are outlined below.