Question

Four steps in risk process to protect assets:

1. risk identification
2. risk analysis
3. risk control/treatment
4. risk financing

Answer 1

The four steps in the risk process to protect assets are risk identification, risk analysis, risk control/treatment, and risk financing.

Step-by-step explanation:

The four steps in the risk process to protect assets are:

1. Risk identification: This step involves identifying and recognizing potential risks that may impact the assets. For example, in financial investments, risks could include market volatility, economic changes, or company-specific risks.
2. Risk analysis: In this step, the identified risks are analyzed to understand their potential impact and likelihood. Tools such as probability calculations, statistical analysis, and historical data can be used to assess the level of risk.
3. Risk control/treatment: This step involves implementing strategies and measures to mitigate or control the identified risks. For example, diversifying investments, setting stop-loss orders, or hedging strategies can be used to manage risks in financial assets.
4. Risk financing: This step involves determining how to finance or cover the potential losses or damages resulting from the identified risks. This may include purchasing insurance, setting aside reserves, or allocating funds for risk management.