What are the steps typically involved in the risk management process?

The risk management process consists of a systematic approach to managing risks effectively. The correct sequence of steps typically involved in this process begins with identifying risks that could impact an organization. This initial step is crucial, as recognizing potential risks is the foundation for further action.

Once risks are identified, the next step is to assess these risks. This involves analyzing the likelihood of their occurrence and the potential impact they could have on the organization. Assessment helps prioritize which risks need immediate attention and which ones are more manageable.

After assessment, the focus shifts to controlling risks. This step includes implementing strategies to mitigate the identified risks, such as transferring the risk through insurance, reducing the probability of occurrence through preventative measures, or accepting the risk based on its assessed level.

The final part of this process involves monitoring the risks and the effectiveness of the control measures put in place. This ongoing monitoring ensures that any changes in the risk environment are detected early and that control measures remain effective.

The other options do not capture the systematic approach as comprehensively as the correct answer does. Identifying, assessing, controlling, and monitoring encapsulates the essential actions needed to effectively manage and respond to risks, ensuring that organizations can maintain operational continuity and achieve their objectives.