Which sequence best outlines the core steps in conducting a risk assessment for a new initiative?

Which sequence best outlines the core steps in conducting a risk assessment for a new initiative?

• A. Identify risks, assess likelihood and impact, rate severity, categorize, plan mitigations, assign owners, and monitor.
• B. Assess likelihood, identify risks, plan mitigations, monitor, categorize, assign owners.
• C. Identify risks, plan mitigations, monitor, assess likelihood and impact, categorize.
• D. Monitor, identify risks, assess likelihood and impact, assign owners, categorize.

Answer: (A)

In risk assessment, you start by identifying what could go wrong for the initiative. Without recognizing the risks, you can’t judge how serious they might be. Once you’ve identified them, you estimate how likely each risk is to occur and how big the impact would be if it happens. This helps you gauge the severity and prioritize which risks require attention. After rating severity, you categorize risks to group similar types or sources, making it easier to organize responses. With priorities clear, you plan specific mitigations to reduce either the likelihood or the impact, and you assign owners to ensure accountability for implementing those actions. Finally, you monitor the risks and the effectiveness of the mitigations over time, updating plans as needed. Sequences that skip steps—like assessing likelihood before identifying risks, or planning before you’ve understood the risks, or monitoring without having taken action—don’t provide a coherent workflow for managing risk.

In risk assessment, you start by identifying what could go wrong for the initiative. Without recognizing the risks, you can’t judge how serious they might be. Once you’ve identified them, you estimate how likely each risk is to occur and how big the impact would be if it happens. This helps you gauge the severity and prioritize which risks require attention. After rating severity, you categorize risks to group similar types or sources, making it easier to organize responses. With priorities clear, you plan specific mitigations to reduce either the likelihood or the impact, and you assign owners to ensure accountability for implementing those actions. Finally, you monitor the risks and the effectiveness of the mitigations over time, updating plans as needed.

Sequences that skip steps—like assessing likelihood before identifying risks, or planning before you’ve understood the risks, or monitoring without having taken action—don’t provide a coherent workflow for managing risk.