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Keywords Risk, Risk management
Abstract In this paper risk identification is investigated as a basic stage in risk management. The risk identification phase as the first stage in the risk management process is presented and its leading role for effective risk management is proved The basic terms that are necessary for building of the frame approach for risk identification are defined: sources of risk-hazard, factor-- peril-resources exposed to risk A classification of risk sources - physical, social political, operational, economic, legal and cognitive environment - is proposed It allows covering all types of risk facing the organisation. A grouping of the resources exposed to risk such as physical, human, and financial resources is introduced. It is based on a practical consideration of the risk situations in the organisations.
Introduction
Risk is an inherent part of business and public life. Dynamic market relations increase the uncertainty of the environment where business and public organizations work. Keeping high competitiveness requires the organizations to start initiatives that may have different possible outputs. The possibility of these outputs occurring determines the risk in organisations' activity. Risk covers all aspects of organizational activities and it is included in all management levels. Risk management has become a main part of the organisation's activities and its main aim is to help all other management activities to reach the organization's aims directly and efficiently. Risk management is a continuous process that depends directly on the changes of the internal and external environment of the organization. In reality the changes in the environment require continuous attention for identification and control of risks.
The aim of this paper is to investigate risk identification and to identify its role in the total risk management process, to define the basic terms used to show the characteristics of the risk, to investigate the peculiarities of the identification as a process and to present a general approach for risk identification.
Problem description
Risk identification is the first stage of risk management. It develops the basis for the next steps: analysis and control of risk management. Correct risk identifiraction ensures risk management effectiveness. If risk managers do not succeed in identifying all possible losses or gains that challenge the organisation, then these non-identified risks will become non-manageable (Greene...