Final answer:
Risk analysis and assessment is a critical responsibility of upper management, who are tasked with defining its scope and ensuring the appropriate resources and support for its execution. Their leadership in this area is vital for promoting a proactive risk management culture within an organization.
Step-by-step explanation:
Risk analysis and assessment is an integral process primarily for upper management. It is imperative for them to take the lead in initiating and sustaining this process. They are responsible for setting out the parameters by defining the scope and objective of the risk assessment to guide their team. This includes identifying potential risks that could impact the organization, evaluating the likelihood of these risks occuring, and understanding the possible impact they could have on the company's objectives.
The involvement of upper management is crucial as it establishes the importance of the risk management process throughout the organization. They must ensure that the resources required for effective risk assessment are available and that the outcomes are communicated and incorporated into the organization's strategic planning. The commitment of top executives to the risk management process empowers teams and promotes a culture of risk awareness and proactive management, which is vital for the organization's resilience and long-term success.