The Process of Risk Management

Abstract

This chapter is dedicated to the processes of risk management. In Chapter 2 (The Concept of Risk Management) the risk management frameworks are examined in different countries in Europe, the American continent and Australia/New Zealand as also at different Organizations. The risk management process as per the Australia/New Zealand standard will be the basis for this Chapter. The following key elements will be discussed in detail:

• Establishing the context has to do with understanding the Organization’s background and its risks and identifying and analyzing stakeholders.

• Risk identification has to develop a list of sources of risks and events that might have an impact on the achievement of each of the objectives identified in the previous step: establish the context.

• Risk analysis aims to provide an understanding of the level of risk and its nature, and to help set priorities and options for treatment.

• Risk evaluation will guide in deciding whether that risk is acceptable or not.

• Risk treatment will help to choose one or more treatment options for each unacceptable risk.

• Monitoring and review to assess the effectiveness and appropriateness of the risk management strategies and systems.

• Communication and consultation with internal and external Stakeholders to improve the risk management process.

After reading this Chapter you will understand the key elements of the risk management process