Which of the following lists the steps of the Risk Management Process in the correct order?

• A. Risk Identification; Risk Analysis; Risk Control; Risk Financing; Risk Administration
• B. Risk Identification; Risk Control; Risk Analysis; Risk Financing; Risk Administration
• C. Risk Identification; Risk Analysis; Risk Control; Risk Financing; Risk Administration
• D. Risk Analysis; Risk Identification; Risk Control; Risk Financing; Risk Administration

Answer: (C)

Getting a risk management program in the right order means first identifying what could go wrong, then analyzing those risks for likelihood and impact, then applying controls to reduce or avoid exposure, then arranging financing to cover residual risk, and finally administering the program to monitor, report, and adjust over time. Identifying risks first is essential because you cannot assess or address risks you don’t know exist. Once risks are identified, analysis helps prioritize which ones matter most so you can focus controls efficiently. Implementing controls follows from that analysis to reduce exposure; financing comes after controls to cover what remains after mitigation. Administration is ongoing, ensuring the process stays current, metrics are tracked, and adjustments are made as conditions change. The other sequences try to analyze before identifying or swap steps like control and financing, which breaks the logical flow and hinders effective risk treatment.