Question

Please describe the risk management process and how it works.

Answer 1

Risk management process is the process where organization seeks to reduce the uncertainties which can eventually affect the human and financial capital.Careful planning and implementation is vital to carry out risk management.

It is worked by following the steps as below:-

1. Identification of risks:- Initially risks are identified which an organization might encounter.

2. Measurement of risk:- In this, we measure the impact of risk if it occurs.

3.Examination of solutions:- In this process risk is examined for various solutions to treat it.

4. Implementation of solution:- The best possible solution is implemented.

5. Monitoring the results:- In this, results are monitored to know if the solution is effective or not.

Risk management process is not a one time exercise, rather it is continuous process because risks are dynamic and everchanging.

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