What are the steps in risk management process?(10marks)

Here are the steps in the risk management process:

1. Risk Identification: This is the first step where potential risks that could affect the business are identified. This involves looking at internal and external factors.
2. Risk Analysis: Once identified, risks are analyzed to understand their likelihood of occurring and their potential impact. This helps in prioritizing risks.
3. Risk Evaluation: Risks are then evaluated against predefined risk criteria to determine whether they are acceptable or require treatment.
4. Risk Treatment: For unacceptable risks, strategies are developed and implemented to manage them. Common strategies include avoiding the risk, reducing its likelihood or impact, transferring it (e.g., through insurance), or accepting it.
5. Risk Monitoring and Review: The effectiveness of the risk management strategies is continuously monitored, and the entire process is reviewed periodically to ensure it remains relevant and effective.