Process of evaluating the likelihood and severity of identified risks and prioritizing them for mitigation.
Risk identification: This involves identifying potential risks that a business may face, and understanding how they can impact the organization's operations.
Risk analysis: This involves evaluating risks to determine their likelihood of occurrence, the potential impact they could have, and the ability of the organization to manage them.
Risk evaluation: This involves taking the results of risk analysis and determining which risks are acceptable, which ones need further evaluation or management, and which ones need to be avoided or transferred.
Risk treatment: This involves implementing strategies to reduce, eliminate, or transfer risk, such as implementing new policies, changing procedures, or purchasing insurance.
Risk monitoring: This involves continuously monitoring risks to ensure that they are being managed effectively, and to determine whether any changes in risk profile require additional treatment.
Risk reporting: This involves communicating information about the organization's risk profile to stakeholders, such as investors, regulators, and senior management.
Risk culture: This involves developing a culture within the organization that recognizes and addresses risk, and that values risk management as an important part of overall business strategy.
Risk governance: This involves establishing and implementing policies and procedures to ensure that risks are being managed effectively and that the organization is complying with relevant laws and regulations.
Risk communication: This involves communicating information about risks both inside and outside the organization, and building relationships with stakeholders to promote transparency and accountability.
Risk tolerance: This involves defining the organization's level of risk tolerance, based on its goals, objectives, and overall risk profile.
Financial Risk Assessment: Identifies the likelihood of financial loss or damages incurred from an investment in the business.
Strategic Risk Assessment: Analyzes the strengths and weaknesses of the business environment, internal system, competition and future possible changes.
Operational Risk Assessment: Identifies the risks associated with the daily operations of a business, rather than actions taken to manage these risks.
Compliance Risk Assessment: Assessing the potential legal or regulatory impacts associated with a lack of compliance.
Hazard Risk Assessment: Assessing the likelihood of natural hazards, coupled with an assessment of the impact these hazards would have on business operations.
Technical and Equipment Risk Assessment: Evaluates the likelihood of technical operational failure of a product or equipment once introduced to the market, and the effect of such failure.
Physical Risk Assessment: Evaluates the likelihood of physical threats such as break-ins or natural disasters against the concerned business assets, and the effect of such threats.
Reputational Risk Assessment: Measures risks that arise from negative perceptions of the business, or for issues associated with the brand or company's reputation.
Project Risk Assessment: Identifies the potential difficulties, setbacks, losses in projects throughout its lifecycle.
Information security risk assessment: This type of risk assessment deals with the possibility of data breaches, virus attacks or loss of critical information.