Which of the following is the correct order in the risk management phase?

Management decides to implement a risk management system to reduce and maintain the organization’s risk at an acceptable level.

Which of the following is the correct order in the risk management phase?
A . Risk Identification, Risk Assessment, Risk Treatment, Risk Monitoring & Review
B . Risk Treatment, Risk Monitoring & Review, Risk Identification, Risk Assessment
C . Risk Assessment, Risk Treatment, Risk Monitoring & Review, Risk Identification
D . Risk Identification. Risk Assessment. Risk Monitoring & Review, Risk Treatment

View Answer

Answer: A

Explanation:

The correct order in the risk management phase starts with Risk Identification, where potential business risks are determined. This is followed by Risk Assessment, which involves analyzing and prioritizing the identified risks. Next is Risk Treatment, where plans are made to mitigate the risks. Finally, Risk Monitoring & Review is conducted to oversee the risk management process and make necessary adjustments. This sequence ensures a structured and effective approach to managing risks within an organization.

Reference: The sequence aligns with the widely recognized ISO 31000 risk management standard, which outlines these core steps in managing risks123.