What is the guiding pricipal of composite risk management?

Answer 1

Composite Risk Management (CRM) is an approach to risk management that is used by the U.S. military. It is based on the idea that risk management should be a continuous process of planning assessing controlling and managing risk. The guiding principal of CRM is to identify assess and manage risks in a systematic way. This is done by first identifying potential risks then assessing the likelihood of those risks occurring and then developing strategies to reduce the impact of those risks.

The four steps of CRM provide a framework for managing risk:

• Planning Developing strategies and plans to identify assess and manage risks.
• Assessment Analyzing the potential risks and determining their likelihood of occurring.
• Control Taking measures to reduce the likelihood or impact of risks.
• Management Monitoring the risk and taking corrective action when necessary.

The goal of CRM is to ensure that risks are managed in an effective and efficient manner. This is done by identifying potential risks assessing the likelihood of these risks occurring and then developing strategies to reduce the impact of those risks. By using a systematic approach to risk management organizations can avoid costly mistakes and ensure that risks are identified and managed in a timely manner.