The 8 Steps for Evaluating Risk

Risk Manager Jason Adamson knows that risk is more than just a board game.Β 


Here are 8 steps to evaluate workplace situations, procedures, events, etc. for risk.

  1. Internal Environment – Determine risk management philosophy, appetite, integrity and ethical values.
  2. Objective Setting – Align risk management objectives with the organization’s mission and appetite. – Begin with the end in mind.
  3. Event Identification – Identify internal and external events that will affect the achievement of objectives.
  4. Risk Assessment – Analyze risks, considering likelihood and impact.
  5. Risk Response – Select how to respond to the risks identified.
  6. Control Activities – Establish policies and procedures to carry out effective risk responses.
  7. Information & Communication – Use effective communication that flows down, across, and up the organization.
  8. Monitoring – Make modifications through ongoing monitoring of the risk management process.