Glen owns a number of out of town warehouses and is considering commercial risk management so that he can make informed decisions about the risks faced by his business. What is the final stage of the risk management process?

The final stage of the risk management process is risk control. This step involves implementing strategies to manage and mitigate the risks that have been identified and analyzed in the earlier stages. Essentially, in this phase, Glen would put into practice the recommendations that arise from the risk assessment. This could include measures like purchasing insurance to cover specific risks, implementing safety protocols in his warehouses, or even deciding to avoid certain high-risk activities altogether.

Risk control also encompasses ongoing monitoring and review of risk management strategies to ensure that they remain effective over time. It’s about taking action based on the previously gathered insights into risks, ensuring that Glen actively manages his exposure to potential losses as he runs his business.

The other stages, such as risk perception, risk identification, and risk analysis, are crucial parts of the overall risk management process but occur prior to the final stage of implementation and control. Each of these earlier stages lays the groundwork for effective risk management, but it is in risk control that the theoretical assessments are applied practically to achieve safety and security for Glen’s warehouses and business operations.