Risk management advice: Risk management process is made up of different steps and is under continuous supervision within an organization. Above of that, the business defines the risk strategy as part of its organizational culture and individually emphasizes risk tendencies in the form of normative elements such as leadership and organization.
Specification: At the beginning of the project, internal information about the company is gathered thus enabling an analysis of the current risk situation. This is then followed up by an analysis of the current key aims of the project and then decision of how to continue are made.
Risk identification: In the frame of risk identification, all specific risks in concern of the business are systematically taken into account. This is achieved by designing a risk catalogue containing business specific risks in order to structure the risk identification process. This is supported by e. g. working process analysis, workshops, benchmarks, and checklists.
Risk rating: The identified risks are being rated either qualitative and quantitative as well as severity or frequency. Risks which cannot be described by quantity in a reasonable manner are being described in quality instead. In order to prioritize quantitative risks, it is possible to make an assumption with a relevance scale (1 =insignificant; 5= immediate threat to a company´s existence).
Risk aggregation: Risk aggregation answers the question, how severe are the current identified risks already affecting the company as a whole. The results of the risk aggregation make it possible to enable a statement concerning the risk-carrying capacity of a business (capital and liquidity) is enough to bear the risk and continue the business to meet the criteria of running the business in the long-term. The risk capacity operates as an indicator for an economically plausible value oriented risk prevention strategy.
Risk prevention: With the knowledge of relative significance of specific risks and their full volume it is possible to perform precise risk management process and prevention measures. The risk prevention mix focuses on measures concerned with risk diversion, avoidance, minimization, transfer and personal liability.
