Risk Management Stages

Risk Management Stages

The risk management process has 3 main risk management stages. See the proper order of the risk management stages recommended by us:

 First Step – Risk Assessment

  1. Classify information
  2. Identify threats
  3. Identify vulnerabilities
  4. Analyze risk to information assets
  5. Select a method
  6. Summarize and communicate the risk

Second Step – Risk Mitigation

  1. Identify options
  2. Choose an option, including merging cyber security and physical security.
  3. Implementation :
  • Accept the risk
  • Transfer the risk
  • Limit the risk: put control in place
  • Avoid the risk

Third Step – Evaluation

Risk Management is looking at what could go wrong and figuring out how to stop it or at least lessen its impact.

Assessment, prevention, and evaluation of threats are all part of it. Without ever realising it, we all engage in innumerable instances of informal risk management every single day.

For example: When crossing the street, we always have to assess the situation and decide whether it’s safer to run into oncoming traffic, wait for the signal to change, use the crosswalk, etc.

  1. Risk assessment refers to our capacity to think through the repercussions of every choice we make.
  2. Risk mitigation, informed by early training and our prior experience crossing roads. We can limit our risk by waiting for the light and crossing at the crosswalk, we can let someone else decide for us by following them across the street, or we can choose not to cross the street at all. We reached these conclusions after weighing the potential dangers involved. You’ll know what worked if you make it across the street. If something went wrong, like your car horn blowing or your brakes squeaking, you should think about whether or not another option would have been preferable.