Layug Khal-el O.
CRIM 2-D
LEA3
1. Risk Identification
- Risk Identification is the procedure for identifying possible hazards to your company or a
business. Anything from a natural calamity that can destroy your property to a dissatisfied
worker who might compromise your systems can fall under this category. Being a business
owner exposes you to hazards all the time. All of them have the potential to affect your
bottom line, albeit some are more significant than others. For this reason, it's critical to have
a risk identification mechanism in place. Risk identification is an essential part of any
business, but it’s especially crucial for small businesses. For one, small businesses are more
vulnerable than larger ones, so they need to be extra vigilant about risks. It enables you to
comprehend potential problems and how you might be able to avoid them. It enables you to
create a strategy for handling any hazards that may occur. It assists you in making more
informed business decisions.
2. Risk Analysis
- Risk Analysis refers to the evaluation procedure that determines the likelihood of any
unfavorables occurrences that could have a detrimental impact on businesses and the
environment. Governments, nonprofit organisations, and corporations (banks, construction
companies, healthcare providers, etc.) frequently do risk analyses. Organisations can decide
whether to approve a financial application or embark on a project, as well as what steps they
would need to take to safeguard their interests, by conducting a risk analysis. A balance
between risks and risk reduction is made easier by this kind of analysis. To reduce potential
unintended consequences, risk analysts frequently collaborate with forecasting experts. Risk
analysis is important because it guides company decision-making. Consider the example of a
company considering whether to move forward with a project. The decision may be as simple
as identifying, quantifying, and analysing the risk of the project.
3. Risk Assessment
- The definition of a risk assessment is a systematic process of locating risks and assessing
them in a workplace, followed by the implementation of appropriate control measures to
eliminate or lessen them. The importance of risk assessment is a straightforward and
structured method of ensuring the risks to the health, safety and wellbeing of
employees (and others) are suitably eliminated, reduced or controlled. Carrying
out suitable and sufficient risk assessments is the primary management tool in
effective risk management. It is a legal requirement for any employer and must
be documented wherever five or more people are employed. The main purpose
of risk assessment is to identify health and safety hazards and evaluate the risks
presented within the workplace.
4. Risk Treatment
- Risk Treatment is a word used to describe all of the options, methods, and strategies used to
address a particular risk and are guaranteed to produce the intended result with regard to the
threat. The goal of risk treatment is to remove, reduce, or redirect residual risk. Developing
risk treatment plans is essential to safeguarding the company since it prevents risk from
happening rather than addressing it. Identifying the many risks that that specific business
organisation faces is essential to effective risk treatment.
5. Risk Monitoring
- Risk Monitoring refers to a company's system for monitoring its present risk exposure, which
includes the risk management system in place and any other initiatives that help the company
make risk-related choices. It plays a crucial role in figuring out people's risk appetites, or
how much danger they can bear, and frequently results in the development of key risk
indicators (KRIs). The importance of risk monitoring allows companies to know the types of
risks that affect their operations and bottom line, as well as which strategies best mitigate
them. minimises risk by identifying it and ensuring there are defences sufficient to prevent it.
Reference :
https://safetyculture.com/topics/risk-identification
https://www.investopedia.com/terms/r/risk-analysis
https://www.britsafe.org/training-and-learning/informational-resources/risk-assessments
https://continuity2.com/blog/risk-treatment-with-examples
https://seon.io/resources/risk-monitoring
