Step 1: Identify Organizational Risks – Begin by assessing potential risks that could affect operations, finances, reputation, and compliance. Categorize risks into strategic, operational, financial, and compliance-related for a structured approach.
Step 2: Assess Risk Impact and Likelihood – Evaluate the probability and potential impact of each risk. Prioritize risks that could have significant consequences and require immediate attention.
Step 3: Develop Mitigation Strategies – Implement measures to reduce, transfer, or manage risks. This may include internal controls, insurance, contingency planning, and policy updates.
Conclusion: Enterprise Risk Management provides a structured approach to identify, assess, and mitigate risks. Understanding risks, evaluating their impact, and implementing mitigation strategies ensures organizational resilience.