Risk management process

The best plans and declarations of intent in the area of risk management will come to nothing if the following risk cycle - with its six different phases - is not accepted and practised.

In the first phase, sensitisation in respect of the company's specific risks is necessary. It is absolutely essential to ensure acceptance within the company. Ideally, loss scenarios will first be compiled, or examples of losses taken from the company's past experience.

In the second phase, the task is to identify the risks affecting the company and then evaluate them using the risk management system which will be in place by then. Subsequently, the risks which have been outlined can be reduced by means of countermeasures or adjustments, which must be decided upon. Controlling the risks makes it possible to keep a firm grasp of the situation at all times.

In the final phase, the risks and all associated risk management measures must be subjected to thorough monitoring.