Risk Management

The risk management process includes four general steps which explain functionality solutions.

• Planning
• Identification and Risk Analysis
• Response to risk
• Risk Monitoring

Planning

Risk management process begins with planning. It is usually performed as follows:

• establishing risk catalogue and activities for the company
• The next step is to identify key indicators of risk for each of the major risks
• It is necessary to document how the risk can be coped with, ie to what extent will go to each individual line of business will go as well as the company itself

Identification and Risk Analysis

Having completed the planning phase, the next step is to identify and analyze the risk. The aim is to identify all key risks regardless of where they can be, internally or externally, and analyze them on the basis of qualitative and quantitative methods.

Response to risk

The next step is a response to the risk. Once we have identified critical risks we must have a strategy for appropriate response. Some strategies can be adapted to risks that appear in companies, but each documented response has its expenses, the owner and status.

Risk Monitoring

The business should be proactively monitored and tracked with own process for risk management.