The risk management process is applicable to any level of the organization. You can implement the risk management process outlined here at the highest level of strategy or at the level of an individual project.
Risk management process is iterative
This process is suitable for many different applications and purposes.
Regardless of the scope of your application, this process of risk management is designed to be iterative, not rigidly sequential. An iterative risk management process means that you can experiment in the context of a project or department.
Components of the risk management process
There are six major components of the risk management process:
- Communication and consultation,
- Scope, context, process,
- Risk assessment,
- Risk treatment,
- Monitoring and review, and
- Recording and reporting.
The six components together constitute a comprehensive, effective risk management process. We will analyze each component in depth.