What is the first step in the risk management model?

The first step in the risk management model is to assess risks. This initial stage involves identifying potential hazards and evaluating the likelihood and severity of their impact. By conducting a thorough assessment, organizations can gain a clearer understanding of the risks they face, which is crucial for informed decision-making in subsequent steps of the risk management process. Assessing risks allows for prioritization, enabling organizations to focus their resources on the most significant threats. This step lays the foundation for effective risk management by establishing the context for further analysis, selection of appropriate responses, and ongoing monitoring.