Step four in the risk management process is to monitor what goes on in your business. Since originally implementing your risk management plan changes have likely occurred and subsequently your risk management methods might need tweaking. During the monitoring phase, staff should be consulted to determine the success of risk management strategies. Also, during this phase records should be updated and reviewed for compliance and success in controlling risk.

Once step two of the risk management process is complete as discussed in a previous blog, step three is to determine what to do to control risk. This is the step in which you can make affirmative decisions and take action to protect your assets. After you have identified risks in the previous steps, you must evaluate the likelihood that a risk will occur and the severity of potential harm that may result. Probability and severity may be determined by reviewing prior incident reports, litigation history, or brainstorming the possibilities.

The risk management process can be daunting. The first step in this process, however, is to identify risks to your business. But how should you go about identifying risks to which your organization might be exposed?

For starters, brainstorm with your current employees. Collaboration with your staff can bring new perspective to the risks to your business. Also, observe a competitor’s operations to see how an organization in a similar industry manages its risks. Another option is to review trade magazines and journals to keep up on current issues and trends relevant for your organization. Yet another way to help in identifying risks is to attend professional workshops or educational seminars to learn from experts.