CEB see risk management basically about identifying and defining what can go wrong, why and what can be done about it. Risk management is a simple decision making tool, it is not complex and it does not require specialist expertise.
Risk management does not mean that risks can be prevented or avoided completely. Nor is risk management about risk taking without appropriate management strategies - that is risky management . Risk management is really about reducing the impact of risk to an acceptable level.
The risk management process is not a lay of bureaucracy, but rather adds a systematic approach to what most people do already. There are a number of possible risk management models. The CEB Model, represented below, uses a six-step approach.
The process for managing risk can be described as a structured framework for incorporating risk management into daily activities of our business. It is a set of principles, not a detailed prescription. The application will depend upon the context in which it is used and can be applied at any stage in the life of an activity or project. It can also be applied at all levels of the organisation - strategic and operational.