Step 1: Gather Relevant Information – Collect data on internal processes, industry trends, financial performance, and historical incidents. Comprehensive information supports accurate risk assessment.
Step 2: Analyze Risks – Evaluate each risk’s likelihood and potential impact. Use qualitative and quantitative methods such as risk matrices, scoring, and scenario analysis.
Step 3: Prioritize and Mitigate – Rank risks by urgency and significance. Implement appropriate controls, contingency plans, and monitoring systems to manage prioritized risks effectively.
Conclusion: Risk assessment and analysis are critical for informed decision-making. Gathering data, analyzing risks, and prioritizing mitigations ensures proactive management and reduces potential negative impact.