What is the next step after risk identification?

After risk identification, the subsequent step is risk analysis. This process involves examining and evaluating the identified risks to understand their potential impact and likelihood. Risk analysis allows organizations to prioritize risks based on their severity and probability, which is crucial for informed decision-making in the risk management process.

In risk analysis, various methods and tools can be employed to quantify risks, enabling stakeholders to visualize the potential consequences of risks and the areas that require the most attention. Without this analysis, organizations may struggle to implement effective risk management strategies because they would lack a clear understanding of which risks pose the greatest threats.

This step sets the foundation for the following stages, including risk treatment, where strategies will be developed to mitigate or manage the risks, ensuring that the organization can respond adequately to potential adverse events. Deploying risk analysis effectively leads to more robust and proactive risk management practices, enhancing the overall resilience of the organization.