As you know, although you may or may not be responsible for developing your organization’s risk-management plan, you’ll be responsible for managing policies to manage risk. This ongoing task requires that you

1. identify the risks of your program;
2. determine the probability that risks will occur and estimate their potential severity;
3. determine what you can do to avoid, reduce, and/or transfer the risk; and
4. implement and monitor your risk-management plan.

In the next two activities, you’ll complete the first three of these four steps. You’ll address step 4 later in the unit.