1. Risk Assessment: Risk assessment is a process of analyzing the risk factors associated with a particular task or investment and determining the likelihood of a negative outcome. This is the first step in Regur and requires the assessor to research the business and financial conditions of the undertaking. The information gathered in the assessment will then be used to identify and assess the potential risks that may come with the task or investment.
2. Risk Monitoring: Risk monitoring is an ongoing process of gathering, analyzing and interpreting data about the potential risks that have been identified for the task or investment. Here, assessors will use different methods such as manual review, automated tools, and forward-looking technologies to gather, analyze, and monitor data over time to identify changes in identified risks.
3. Risk Mitigation: Once the risks have been identified and monitored, risk mitigation strategies need to be developed to reduce the likelihood of the risks occurring. These strategies may include instituting policies and practices to contain and reduce the impact of a potential threat, engaging in activities that transfer risk, or engaging in activities that shift the burden of a threat outside of the organization.
4. Risk Management: Risk management is an ongoing process that allows the organization to identify, measure and monitor the risks identified. This includes creating protocols to ensure effective and comprehensive risk management, conducting tests and reviews to ensure the effectiveness of risk management practices, and improving and maintaining policies associated with the identified risks.
5. Risk Reporting: Risk reporting involves the assessment, monitoring and management of identified risks and involves the reporting to those with decision-making authority over those risks. Here, assessors need to provide regular reports in order to understand and illustrate the changes in the identified risks, their likelihood and potential impacts. These reports also serve to maintain accountability, by providing information needed to hold decision makers and investors accountable.