‭Risk management‬ ‭ isk management, just like management control and internal control, is part of the‬ R ‭organizational principles.‬ ‭ he Coso report recognizes, as stated, the following elements of internal control: the control‬ T ‭environment, risk assessment, control measures, information and communication and‬ ‭monitoring.‬ ‭ isk assessment is one of the five activities that are part of internal control. Controlling‬ R ‭these risks is referred to as risk management. Risk can be broken down into four‬ ‭components, namely a cause of damage, can be designated as a risk factor (the event),‬ ‭the objects to which damage can be caused (the risk object), the chance that the‬ ‭damage will be caused (damage probability) and the consequences or the extent of the‬ ‭risk factor. Multiplying the damage probability by the damage extent produces the‬ ‭damage effect.‬ ‭Risk managementWe therefore define it as “a systematic process of:‬ ‭-‬ I‭dentifying and analyzing risks that threaten the corporate objective (risk‬ ‭analysis)‬ ‭ he first step in risk management concerns the identification and valuation of‬ T ‭the relevant ones risks. This step is also referred to as risk analysis. Risk‬ ‭analysis focuses on identifying the risk factors, determining the associated risk‬ ‭objects and valuing the damage effects by estimating the damage probabilities‬ ‭and the extent of damage per damage object.‬ ‭-‬ I‭nventorying and selecting risk management techniques‬ ‭Risk analysis therefore begins with identifying the area of responsibility to‬ ‭which the analysis will relate. It will then have to be determined which elements‬ ‭are important for achieving the objective of the area of responsibility, or the‬ ‭so-called critical success factors must be determined. In other words, the risk‬ ‭factors that can undermine the critical success factors of the organization‬ ‭must be analyzed.‬ ‭-‬ I‭mplementing the chosen risk management instruments‬ ‭You can then proceed to identify the relevant risk factors and determine their‬ ‭extent in which the identified risks are important to the organization. Bee This‬ ‭step determines the relative importance of a particular risk. The relative‬ ‭importance is a function of the identified risk factor. A risk matrix can help‬ ‭with this. See matrix below:‬ ‭Impact/opport‬ ‭u nity‬ ‭High‬ ‭Low‬ ‭Low‬ ‭Preventive‬ ‭controls‬ ‭ cceptance‬ A ‭(risk retention)‬ ‭High‬ ‭Transfer stops‬ ‭„tight controls‟‬ ‭Signaling measures‬ ‭(early warning)‬