A-Z Popular Blog Risk Management Search »
Risk Management
Key Concepts

19 Steps for Risk Management

 , updated on
Risk Management is the identification and management of potential losses. There is a strong relationship between risk and reward. Generally speaking, risk management neither seeks to maximize reward nor minimize risk. In most cases, the goal of risk management is to optimize the risk-reward ratio within the bounds of an organization's risk tolerance. The following are the basic steps in the risk management process.
Risk Identification
List the risks associated with a business, project, strategy, plan, decision, product or service. All stakeholders are given an opportunity to contribute.
Risk Assessment
Assess the probability and impact of risks.
Risk Treatment
Accept, avoid, mitigate, transfer or share risks. Also known as a risk response.
Risk Monitoring
Monitor change to risk and identify risks that actually occur as issues.
Risk Tolerance
Identify the level of risk that is acceptable to risk owners and stakeholders.
Accept Risk
Stakeholders sign off on the risk that remains after risk treatment. This includes secondary risk created by the risk treatments themselves.
Risk Communication
Risks, risk treatments, residual risks and secondary risks are clearly communicated to all stakeholders.
Risk Audits
Regularly evaluate compliance to your risk management policies and processes and measure their effectiveness.
Risk Reporting
Calculate important metrics such as risk exposure and communicate them as reports and dashboards.
Risk Registers
Track risks and all related information such as risk treatments and sign-offs.
Risk Stakeholders
Each risk is assigned to an accountable person or team that owns the risk. Each risk may have additional stakeholders who are consulted or informed.
Risk Contingency Planning
Plan what you will do if a risk actually occurs.
Risk Scenario Planning
Identify and plan for different ways that risks may occur. This may include an examination of moment of risk and risk triggers.
Risk Management Manual
Document practices and processes for managing risk across an organization.
Risk Culture
Training and development programs to create a culture of managing risk. This is particularly important to health & safety risk where everyone may be involved in mitigating risk.
Risk Management Governance
Oversight of the risk management practice that ensures compliance and protection of the interests of stakeholders such as investors and employees.
Risk Management Strategy
Planning improvements to risk management.
Risk Controls
Implementing internal controls designed to prevent risk.
Risk Resilience
Designing systems to be fundamentally resilient to risk. This can be viewed as preventing risks before they can even be identified.

Risk Management

This is the complete list of articles we have written about risk management.
Acceptable Risk
Business As Usual
Business Impact
Business Risks
Calculated Risk
Cascading Failure
Contingency Plan
Contingency Planning
Disaster Preparedness
Dread Risks
Economic Risk
Financial Risk
Innovation Risk
Investing Risk
Moment Of Risk
Plan Template
Political Risk
Positive Risk
Project Risk
Reputational Risk
Residual Risk
Resource Risk
Risk Acceptance
Risk Analysis
Risk Appetite
Risk Awareness
Risk Capacity
Risk Communication
Risk Contingency
Risk Control
Risk Culture
Risk Estimates
Risk Evaluation
Risk Exposure
Risk Impact
Risk Intelligence
Risk Management
Risk Matrix
Risk Measurement
Risk Mitigation
Risk Monitoring
Risk Objectives
Risk Prevention
Risk Probability
Risk Profile
Risk Reduction
Risk Register
Risk Response
Risk Sharing
Risk Taking
Risk Tolerance
Risk Treatment
Risk Trigger
Risk-Reward Ratio
Seasonal Risk
Secondary Risk
Special Risks
Strategy Risk
Tactical Risk
Technology Risk
Unknown Risks
Upside Risk
More ...
If you enjoyed this page, please consider bookmarking Simplicable.

Acceptable Risk

A definition of acceptable risk with examples.

Enterprise Risk Management

A complete overview of enterprise risk management with examples.

Risk Analysis

A complete guide to risk analysis.

Risk Communication

A definition of risk communication with examples.

Risk Identification

The basics of risk identification.

Risk Management Process

Overview of the steps in a risk management process.

Risk Measures

A list of the common measurements for business risk.
The most popular articles on Simplicable in the past day.

New Articles

Recent posts or updates on Simplicable.
Site Map