What is the process called that involves identifying, assessing, and controlling risks while balancing costs with mission benefits?

The process of identifying, assessing, and controlling risks while balancing costs with mission benefits is known as risk management. This comprehensive approach includes not only the identification of potential risks and their impacts but also the development of strategies to mitigate those risks in a way that is cost-effective and aligns with the organization’s objectives.

Risk management encompasses several key components, including risk assessment (identifying and analyzing risks), risk treatment (deciding on how to address those risks), and continuous monitoring and review to ensure that risk management strategies remain effective over time. The ultimate goal is to safeguard the organization’s resources and mission while enabling it to achieve its objectives efficiently.

Other options may be components or related processes within the broader framework of risk management. For example, while risk analysis focuses specifically on assessing the likelihood and impact of risks, and risk evaluation assesses the significance of the identified risks, they are both part of the overall risk management process. Operational risk assessment refers to the evaluation of risks within operational processes but does not capture the full scope of management and decision-making involved in risk management.