Risk Management – A Process

A Process

	Risk Identification
	Risk Assessment
	Risk Treatment
	Create Risk Management Plan
	Implementation
	Review & Evaluate

Risk Management Process

In its most basic form, it follows these simple steps

Risk Identification – Determine those ‘things’ that could prevent your organization from accomplishing its goals.
Risk Assessment – Assess based on two things: 1-Probability of Occurrence coupled with 2-the financial impact should it occur (ensure stock holder value).
Risk Treatment – Once RISKS have been identified and assessed, all techniques to manage the risk fall into one or more of the following categories:
- Risk-Avoidance (Elimination)
- Risk-Reduction (Mitigation)
- Risk-Transference (outsource or insure)
- Risk-Retention (accept and budget)
Create a Risk Management Plan – preferably at the Enterprise Level and across all silos. For SAFC that might mean Global Supply Chain Management across all Divisions.

The Final Steps:
Implementation of the Plan
Review and Evaluation of the plan. Risk Analysis results and management plans should be updated periodically. There are two primary reasons for this:
- To evaluate whether the previous selected controls are still applicable and effective
- Evaluate the possible risk level changes in the business environment. IT risks are a prime example as new technology evolves at a rapid rate, what was once a non-issue maybe quite real later on.

Although the techniques maybe different from company to company the process is quite similar. At SAFC Biosciences, we use the FMEA: Failure Modes & Effects Analysis technique. The Process itself stays much the same, whatever technique you use, it can be applied to different applications, used to drive a variety of risk assessment methods that ultimately enter the Risk Management cycle:

	Identify
	Analyze
	Plan
	Track
	Control
	And start the cycle all over again.

Risk Management is a process that is never ending, nor is ever perfect. SAFC Biosciences can help with your Risk Assessment and together work collaboratively to find the right Risk Treatments that meet your ever changing and demanding need for Risk Management.