The risk management process

The main risks from the "Risk identification and assessment" phase must be analyzed in detail.

This analysis helps integrate the main risks. The company's governing body must come up with a reasonable strategy and define the necessary measures adapted to all of the risks.

Risk management process

Graphic. Shows the different stages of the risk management process

The analysis must include the following elements:

  • analysis of causes and effects,
  • quantitative assessment, and/or
  • qualitative assessment

Detailed analysis of the risks in three steps

Graphic. Shows the three stages of detailed risk analysis

Holding a meeting to analyze the main risks in detail ensures a uniform understanding of risk within the company and within each department/production center. The risks must be attributed to the people (risk managers) in charge of constantly monitoring them.

Risk management strategies should be developed and implemented for all of the main risks. These risks may be:

  • accepted
  • reduced
  • avoided
  • transferred

They should be monitored constantly so that changes may be accounted for. A combination of risk-management strategies is often used and implemented in the planning of measures.

Sample action plan

Risk no. and name


Technological changes that could put the company in danger

Risk manager

Hans Mustermann, Head of Technology

Risk category

O external

O strategic

O operational

O financial

Description of the risk

Different technologies have launched recently on the market that may endanger the company's commercial model. If competitors release new products on the market faster than Muster SA, the consequences could be serious.

Factors/causes of the risk

  • Reports of new products being released on the market
  • Insufficient investment in R&D
  • Poor strategy in establishing the product portfolio

Risk strategy

O accept

O reduce

O avoid

O transfer


  • Aggressive adaptation of strategies and measures in order to put together a high-yield portfolio
  • Market leader in developing substitute products and analyzing opportunities

Existing measures

  • 250% increase in R&D budget for the previous fiscal year
  • Introduction of new measures to recruit employees with R&D skills

Action plan


Major step



1. Prepare prototypes for marketing

Hans Muster

Prototype 1

Prototype 2





2. Acquire a replacement supplier

Fritz Muster

Acquisition offer



3. Recruit two new R&D employees

Anna Muster

Hiring of employee 1

Hiring of employee 2





Source: KPMG Schweiz, Methodik zur Einführung eines Risikomanagementsystems, 2008


Last modification 27.02.2020

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