Every organization faces various risks from external and internal sources that must be assessed. ‘‘Risk assessment’’ is defined as the identification and analysis of relevant risk to achieve objectives, forming a basis for determining how the risk should be managed (accept, reject, share, reduce). To mitigate risks, organizations must set objectives; integrate with sales; and perform production, marketing, financial and other activities to ensure that everything is operating correctly.
This document can be used as a guide for understanding and improving an organization’s risk assessment process.