Risk Management Model

To understand this concept a little better, let us look at a Risk Management Model.

The first level of this risk management model is the “Identification of Risk”. There are specific surveys and tools that can be used for in this process. The second level of this model is the “Evaluation of Risk”. The evaluation has to do this the severity of the risk, the probability of loss, and the exposure to loss. The last level of this model is to create a “Risk Management Plan”. Typically, you can deal with the risk of loss by either terminating the risk, treating the risk, tolerating the risk or by transferring the risk.

Risk Management Steps
Below are the five steps in the enterprise risk planning process.

1. Defining the Task

2. Identifying the Hazard

3. Analyzing the Risk

4. Action

5. Feedback

Mission Task Definition
You need to identify the mission, or in most cases, the task being performed.

You must consider:

a. What is involved?

b. Who is involved?

c. The equipment, people, facilities, etc.

d. The sub-elements involved: training, weather, environment, configuration, etc.

In our next article, we will look at a risk case study involving a driver using the company vehicle.

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