What are the three 3 processes of risk management?

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Effective risk management involves three key processes:

  1. Identification: Pinpoint potential risks.
  2. Assessment: Analyze likelihood and impact of identified risks.
  3. Control: Develop and implement strategies to mitigate or eliminate risks.
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What are the 3 risk management processes?

Okay, so risk management, right? It’s like this crazy puzzle I wrestled with at my old job, a marketing gig back in June 2022. We were launching a new product – a scented candle line, so stressful.

The first bit, finding all the possible problems? That’s risk identification. Think supplier issues, bad reviews, even a crazy competitor’s stunt. That was a nightmare.

Next, we weighed the likelihood and impact of each problem. A supplier delay? Annoying, but fixable. Bad reviews? Potentially catastrophic for sales. This ranking stage is risk assessment. We spent hours in those meetings.

Lastly, we built our safety net. Backup suppliers, a crisis comms plan ready to roll, even extra stock to handle those pesky delays. That’s risk control. Cost about $5000 extra in that stage, I think.

So yeah, identify, assess, control – the risk management trifecta.

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