The event that could occur – the risk,The probability that the event will occur – the likelihood,The impact or consequence of the event if it occurs – the penalty (the price you pay).

What are the 4 components of risk?

They include risk identification; risk measurement and assessment; risk mitigation; risk reporting and monitoring; and risk governance.

What are the 3 components of risk management?

• Operations Risk Management. …
• Financial Risk Management. …
• Strategic Risk Management.