What are the components of Risk Management?

Risk management consists of several key components: risk identification, which involves recognizing potential risks that could affect objectives; risk assessment, where the likelihood and impact of identified risks are evaluated; risk response, which includes developing strategies to mitigate, transfer, accept, or avoid risks; and risk monitoring, where ongoing evaluation ensures that risk management strategies remain effective and relevant over time. These components work together to create a comprehensive approach to managing uncertainties and enhancing decision-making processes.