What is the first step in the risk management process?

The first step in the risk management process is risk identification. This essential phase involves recognizing potential risks that could affect an organization, project, or process. By identifying risks early, organizations can better understand the landscape of uncertainties and potential issues they may face. This includes examining both internal and external factors that might pose threats or opportunities.

Once risks are identified, organizations can then proceed to analyze, assess, and manage those risks appropriately. Risk identification lays the groundwork for subsequent steps in the risk management process, such as risk analysis, where the identified risks are evaluated for their potential impact and likelihood, and subsequently addressed through resolution and monitoring actions. This structured approach helps ensure that all relevant risks are accounted for and managed proactively.