Why do you think Risk Assessment and Priorotization is essential in the Risk Management Process? *Risk...

Why do you think Risk Assessment and Priorotization is essential in the Risk Management Process?

*Risk Assessment and Prioritization

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Expert Solution

Risk Assessment is the process of identifying the risks of a business, and ranking the risks from high-low or low-high is known as risk prioritization.

Risk Assesment and Prioritization is important to handle the risks more effectively and to minimize them. For example Apple is going to launch a new product in the market. Before that it has to make a list of the risks that might be present. If it is going to set a high price for the product then to what extent it is going to affect the sales or profitability of the company. Thus risk assessment helps to take better business decisions, implement effective internal control and minimize fraud. Risk prioritization is important because there are various risks and one cannot deal with them at a time. Therefore it is important to categorize these risks on the basis of the nature of risk or level of risk which may be high, moderate and low and then lay emphasis on them accordingly. This will lead to better management of risks.

ekkarill92 answered 1 year ago

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