Risk Identification

The first step of the risk assessment process is the continuous monitoring required to detect changes in the environment, specifically the dynamics that may result in additional or changed risks for a company. A key step in any risk management technique is to identify the perspective of interest (i.e., from whose perspective should the risk scenario be analyzed ” essentially , who will suffer which losses and gain which rewards?).

For some risk scenarios, it may be important to analyze the same situation from more than one perspective (e.g., different business units or functional areas within the company may each have a different perspective on the same risk) in order to acquire the full corporate perspective.