Risk Management Process - Overview (text version)

The main elements of the risk management process as shown in Figure 1 are as follows:

1. Communicate and consult

Communicate and consult with internal and external stakeholders about the process as a whole and at each stage of the risk management process.

2. Establish the context

Establish the external, internal and risk management context in which the rest of the process will take place.  Establish the criteria against which risk will be evaluated.  Define the structure of the analysis.

3. Identify risks

Identify where, when, why and how events could prevent, minimise, delay or improve the achievement of the objectives.

4. Analyse risks

Identify and evaluate existing controls.  Determine the likelihood, severity and the resulting level of risk.

5. Evaluate risks

Rank and prioritise the risks to assist decision-making regarding the extent and nature of treatments required.

6. Treat risks

Develop and implement appropriate risk treatment strategies to address the risks.

7. Monitor and review

Monitor the effectiveness of all steps the risk management process to ensure continuous improvement. 

Source: AS/NZS 4360:2004

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