The Risk Management Process

Introduction

Risk management is a continuous process that includes different phases such as establishing scope and boundaries, risk assessment, risk mitigation, risk acceptance and communication and monitoring. The parts of communication and monitoring interacts with all the phase of risk management. Risk management as a whole includes identification of potential threat and vulnerabilities and the chances of their occurrence, it also determine the level of acceptable risk. Risk identification involves identification and documentation of existing and potential sources of risks to asset.

In risk management their two source of risk which are Threats and Vulnerabilities.

Threats are events that may harm an organization assets, human resources

This helps to decide the order in which the risks are dealt with. It involves analyzing the type of problem and its criticality. It also helps gauge the effect of not handling the risk. It aids in determining whether the investment involved will bring necessary returns. It is one of the steps in the risk management process.

Risk management is a higher-level process, where the senior management and all other departments calculate the risk, decide on the mode of action to handle the risks, execute the designed controls, and monitor the performance of the controls against the set parameters. Risk management includes risk assessment techniques, risk treatment and acceptance methods, and risk communication.

The main purpose of this research is how organizations handle their risk management process, what treatment methods is used in Risk management.

Methods

Qualitative and Quantitative are the two research when carrying out a research. Quantitative methods are structured surveys, questionnaire surveys. While Qualitative methods are interviews, observations. For this research, qualitative methods will be aborted by using open

Capability

The recovery of critical information resources is based on the recovery capabilities of the organization. The recovery capabilities can be determined by the organizational structure, availability of skilled personnel and adequate recovery equipment, history of incidents and impacts on the organization, and budget.

3. Cost

The cost of implementing a recovery strategy can considerably influence your recovery plan. This cost includes the amount spent on planning, preparation of alternate recovery sites, purchase and maintenance of recovery equipment, buying insurance, and training personnel.

Risk treatment methods

As a part of risk management process, you need to take steps after you’ve identified them and evaluated their impact on an organization. Risk treatment is a process of using strategic methods to reduce risk on business to acceptable levels. Risk treatment includes avoiding, transferring ,mitigating or accepting risk.

Avoid risk

You can avoid a risk by terminating the activities associated with it. This helps completely eliminate the cause of the risk.

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