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Wednesday, December 23, 2009

5 Risk Management Assessment Steps

Risk management is a critical function to ensure the health of the organization and continually assess/face risks. In review there are multiple steps to take to develop a plan including ensuring it fits the organization's culture.

  1. Understand the strategy and risk of the organization.
  2. Data compilation and review of strategic risks.
  3. Prepare a draft, validate with organization, and finalize the strategic risk profile.
  4. Develop Strategic Risk Management Action Plan and communicate throughout the organization to bring alignment.
  5. Implementation/execution of the Strategic Risk Management Action Plan.

“The first step in the risk management process is to acknowledge the reality of risk. Denial is a common tactic that substitutes deliberate ignorance for thoughtful planning.” - Charles Tremper
The above steps are high level. Within each step there are multiple project actions.