Risk assessment and management is a structured approach used by organizations to identify, analyze, evaluate, and control potential threats that could negatively impact objectives, operations, assets, or stakeholders. In an increasingly complex and uncertain environment, effective risk management has become essential for sustaining performance, ensuring resilience, and supporting informed decision-making across all types of organizations.
Risk assessment is the first critical step in the process. It involves identifying potential risks that may arise from internal or external sources. These risks can be strategic, operational, financial, technological, regulatory, environmental, or reputational in nature. Identification requires a thorough understanding of organizational activities, processes, and dependencies, as well as awareness of external factors such as economic conditions, technological changes, and regulatory requirements.
Once risks are identified, they are analyzed to understand their likelihood and potential impact. This analysis helps organizations prioritize risks based on their severity and probability. Qualitative methods, such as risk…