Risk Management – the basic steps

This article will address the four main points of the function of Risk Management and how it is to reduces the risk of loss and minimize its effects.  This article continues with our mini-series of articles on Risk Management.

Risk Management achieves achieves the reduction of the risk of loss and minimizes its effects by:

1. the identification of sources;
   1. property,
   2. net income,
   3. and personnel risks from which losses may occur
2. the evaluation of the financial risk involved in each exposure in terms of:
   1. frequency
   2. severity
   3. and impact
3. the treatment of the risks by either;
   1. elimination or avoidance
   2. reduction or control
   3. transfer to others
   4. or funding the risks
4. finally, monitoring your Risk Management program results continuously and systematically.

Upcoming articles on Risk Management will further expand and explore the four points raised here.