What is risk management, and what are the basic steps at a leadership level?

• A. No steps are defined.
• B. Systematic process to identify hazards, assess risk, implement controls, and monitor effectiveness.
• C. Random hazard checks and ad hoc actions.
• D. Only used in financial risk.

Answer: (B)

Risk management at the leadership level is a systematic, repeatable process to protect people and missions by anticipating hazards and reducing risk. It starts with identifying potential hazards in a plan, environment, or task, then assessing how likely and how severe those hazards are. Leaders use that assessment to develop and implement controls—things like redesigning procedures, adding protective measures, scheduling changes, or additional training—then ensure those controls are put into place and used correctly. The process doesn’t stop there; it includes monitoring and evaluating how well the controls work and making adjustments as needed. This ongoing cycle keeps risk management integrated into planning, execution, and operations.

This approach is better than guessing or waiting for problems to appear, and it applies to safety, operations, and mission success, not just financial risk.