Risk management consists of four essential stages which, taken together, constitute a systematic process for dealing with the broad array of risks that an organization may face.

Stage 1: Identify the risks. The first step in managing risk is to determine what those risks are.

Stage 2: Assess the risks. Not all risks are equal. For the average company, the risk of having an employee injured in a workplace accident is higher than, for instance, the risk that a meteor will destroy its factory.