Organisations face many risks that could potentially have a negative impact on their business. It is therefore important for organisations to have a process in place to assess and monitor risks. This process should be designed to identify, assess, monitor and control risks. There are a number of steps that should be followed when assessing and monitoring risks in an organisation:
- Identify the risks: The first step is to identify the risks that could potentially have a negative impact on the organisation. This can be done by looking at the organisation’s activities and identifying any potential risks. Risks can be identified through a variety of methods, including brainstorming, interviews, focus groups and surveys.
- Assess the risks: Once the risks have been identified, they need to be assessed in order to determine the likelihood of them occurring and the potential impact they could have on the organisation. This can be done by using a risk assessment matrix. The risk assessment matrix will help to identify which risks are more likely to occur and which ones could have a more severe impact on the organisation.
- Monitor the risks: Once the risks have been identified and assessed, they need to be monitored on an ongoing basis. This can be done by setting up a risk management plan. The risk management plan should include a process for monitoring risks and a system for reporting any changes in the risk level. The risk management plan should be reviewed on a regular basis to ensure that it is effective.
- Control the risks: Once the risks have been identified, assessed and monitored, they need to be controlled. This can be done by implementing risk control measures. Risk control measures are designed to reduce the likelihood of a risk occurring or to reduce the potential impact of a risk. There are a number of different types of risk control measures that can be used, including administrative controls, physical controls and technical controls.
By following these steps, organisations can effectively assess and monitor risks. This will help to ensure that any potential risks are identified and controlled, and that the organisation is able to continue to operate effectively.