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The first step of the risk management process is called the risk assessment and analysis stage. A risk assessment evaluates an organization`s exposure to uncertain events that could impact its day-to-day operations and estimates the damage those events could have on an organization`s revenue and reputation. This requires an intimate knowledge of the organization, the market in which it operates, the legal, social, political and cultural environment in which it exists, as well as the development of a sound understanding of its strategic and operational objectives.
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