Lesson 4: Risk Management Cycle

Risk Management Cycle

A structured, repeatable process organizations use to identify, assess, respond to, and monitor risks over time.

Risk Identification

The process of recognizing potential events, conditions, or actions that could negatively affect objectives.

Risk Assessment

The evaluation of identified risks to understand their likelihood and potential impact.

Risk Mitigation

Actions taken to reduce the likelihood or impact of a risk.

Risk Monitoring

The ongoing observation of risks and controls to detect changes in risk levels or effectiveness

Risk Review / Reassessment

The periodic re-evaluation of risks and controls to detect changes in risk levels or effectiveness

Risk Context

The organizational, environmental, and strategic factors that shape how risks are understood and managed

Risk Prioritization

The process of ranking risks to determine which require immediate attention and resources.

Risk Ownership

The assignment of responsibility to individuals or roles for managing, monitoring, and responding to specific risks.

Continuous Improvement

The ongoing refinement of risk management practices based on experience, feedback, and changing conditions