Question

What process is used in analyzing risks? What is most important to consider when formulating a risk response strategy?

Answer 1

The risk analysis process contains five steps. Five steps are as follows:

• Risk identification: Identification of risk is the first step of the risk analysis process. The type of risk and the area of risk are identified in the first step.

• Identification of areas that may be harmed: The affected areas should be identified accordingly. All the key areas which may be affected by risk should be addressed before assuming the solution.

• Risk evaluation and precaution: The weigh of risk should be evaluated after identifying the areas that may be harmed by risk factors. Hence, precautions should be taken before the possibility of any risk.  

• Recording the findings: All the precautions should be recorded and should be implemented after identifying the plans to resolve the risk factors.

• Risk assessment: The solutions for risk factors should be reviewed according to the current situation of the risk. Hence, a possible solution should be addressed if any change is required.  

The ghastliness of the risk factors is most important to consider when formulating a risk response strategy. Proper identification of the ghastliness of the risk factors helps to build up a strategy that aligns with the ghastliness.