Steps that involve in the Risk Management Process –
Risk management is a continuous process where management takes some measure towards minimizing the level of risk as well as the associated loss. It is the procedure of identifying, assessing, and controlling threats to an organization’s assets and earnings.
Risk management is the process of identifying assessing and prioritizing potential risks enables rational planning for achieving an optimal outcome when risk is realized.
According to Gaush, “It is a continuous process is applied effectively anticipated and reduce the risk that has a critical impact on the business.”
According to Williams, “Risk management is the identification, measurement and treatment and exposures to potential accidental loss.”
So, we say that risk management reduces the level of risk at a tolerable level and also enable a business to handle better its ordinary business risk. It is the decision-making procedure involving considerations of political, societal, and economic factors with relevant risk assessments relating to a probable risk so as to expand, investigate and evaluate authoritarian options and to select the optimal dictatorial reaction for safety from that hazard.
Step/process of risk management:
Identify Hazard: It is referred to an identification of those factors that are primarily responsible for causing risk.
Risk Identification: It is referred to the segregation of risk according to their potential losses and developed management techniques by considering the nature of risk-management purpose.
Risk assessment: It is a way of determining the potential loss causing from risk. It means risk is asses according to the loss related to risk.
Risk control: It is a measure of minimizing of risk by developing and implementation of management techniques which act as a control device.
Monitoring and review: It refers to the management of risk through continuous monitoring as well as a control device.