The Risk Management Process
5.1 Overview
The risk management process involves two on-going activities and five logically sequenced
stages:
Assess risks
Establish the context
Identify risks and causal
factors
Analyse risks
Determine existing controls
Determine
likelihood
Determine
consequences
Evaluate risks
Accept
risks?
Treat risks
Communicate and consult
Monitor and review
Compare against criteria
YES
NO
On-going activities:
Communicate and consult
with internal and external
stakeholders as appropriate at
each stage of the risk
management process and
concerning the process as a
whole.
Monitor and review the
performance of the system and
changes that might affect it.
Process stages:
Establish the context for managing risks, including
criteria for evaluating them.
Identify risks and how they can arise.
Analyse how often risks are likely to occur and the
impacts they would have.
Evaluate each risk’s likelihood and potential impacts
against your evaluation criteria.
Treat unacceptable risks to reduce the chance that they
will happen or the impact they would have if they did.