QUESTION

One of the most critical functions of risk management is probably the identification process. A failure to recognize the existence of one or more potential events can result in financial disaster. The importance of being able to anticipate the existence of the problem before it materializes is recognized by everyone but unfortunately there is no scientific method or systemic approach to the identification process.

Required:

a.Identify the eight factors an organization should consider when determining relevant risk criteria.

b. Illustrate the three steps can an organization take to manage its risk to reputation