"Unit and unless risks are properly managed they may cause severe loss to the business." In the context of this, discuss what steps you would like to take for the proper management of the risks of your business.

Risks, if not managed properly may cause severe damage to the organisations and therefore almost all organisations develop sequential process to deal with risks. The steps every business should take for the proper management of risk of business are as under: Identification of risk: It is the first phase of the risk management process. The origin/source of the risk is identified. Assessment of risk: After identifying the origin of the risk the second step is assessment of the risk. A business organisation faces various threats and vulnerabilities that may affect its operation or the fulfilment of its objectives. Therefore, the quantum and severity of risk involved is assessed. Analysing and evaluating the risk: It is the third step where the risk is analysed and evaluated. The risk analysis involves thorough examination of the risk sources, its positive and negative consequences, the likelihood of the consequences that may occur and the factors that affect them and assessment of any existing controls or processes that tend to minimize negative risks or enhance positive risks. Handling of risk: The ownership of risk should be allocated. The persons concerned when the risk arises, should document it and report it to the higher ups in order to have the early measures to get it minimized. Risk may be handled in the following ways: Risk Avoidance; Risk Retention/absorption - it may be active or positive; Risk Reduction; Risk Transfer. Implementations of decision: The last step in the risk management process is the implementation of the decision. It is recommended to the Board or the organization to use various alternatives of tackling the risks. After getting it approved, initiate measures to implement it.