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Jeremiah Believe
Feb 20

Understand how risk is identified and assessed?

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Feb 20
Risk is identified and assessed through a systematic process that involves the following steps:

1. Identification of potential risks: This involves identifying all possible risks that could impact a project, organization, or individual. This can be done through brainstorming sessions, historical data analysis, expert judgment, and other methods.

2. Risk analysis: Once potential risks have been identified, they are analyzed to determine their likelihood of occurring and the potential impact they could have. This involves assessing the severity of the risk and the likelihood of it occurring.

3. Risk evaluation: After analyzing the risks, they are evaluated to determine which risks are most critical and require immediate attention. This involves prioritizing risks based on their potential impact and likelihood of occurrence.

4. Risk treatment: Once risks have been identified, analyzed, and evaluated, appropriate risk treatment strategies are developed to mitigate or eliminate the risks. This can include risk avoidance, risk reduction, risk transfer, or risk acceptance.

5. Monitoring and review: Risk assessment is an ongoing process that requires regular monitoring and review to ensure that risks are being effectively managed. This involves tracking the progress of risk treatment strategies and making adjustments as needed.

Overall, risk identification and assessment are essential components of effective risk management, as they help organizations and individuals anticipate and prepare for potential risks that could impact their objectives.

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