INFORMATION SYSTEMS IN MANAGEMENT V - SGGW

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� finding a balance point for the level of risk and the benefits derived from
the project;
� communicating the company's management on the risks for the project and
the lost benefits if the risk is materialized.
The cycle of risk management is presented in the Figure 2.
Threat identification
Risk assessment
Determining the
possible response to the
threat
Choice of the reaction
Figure 2. The cycle of risk management.
Source: Own preparation based on [2].
Monitoring and
Reporting
Planning and resource
allocation
The first step is Risk Identification. When identifying risks it is important do
not assess the probability of danger in the early stages, because this can lead to too
hasty assessments that may underestimate the risk.