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These rules were developed utilizing the levels of risk described in the Army RM process, Low, Moderate, High, and Extremely High.
Risk assessment serves national, departmental, and military leaders as they set priorities and allocate resources to mitigate risk. Identifying, assessing, and mitigating strategic and military risk lays the foundation and priorities to employ, manage, and develop the Joint Force to meet national military objectives.
A 4(IV)(B) would be a low level risk, with a minor severity and a likely probability. Immediate danger to health and safety of the public, staff, or property and resources through continuous exposure. Probably will occur in time if not corrected, or probably will occur one or more times.
The main four types of risk are: strategic risk - eg a competitor coming on to the market. compliance and regulatory risk - eg introduction of new rules or legislation. financial risk - eg interest rate rise on your business loan or a non-paying customer. operational risk - eg the breakdown or theft of key equipment.
The 4 essential steps of the Risk Management Process are: Identify the risk. Assess the risk. Treat the risk. Monitor and Report on the risk.