A supply manager for JKL, Inc.

Risk Management Process:

Identifying sources of risk and their probability of occurrence is the initial step.

Next Step - Estimating Impact:

Estimating the Likely Impact: Assessing the potential consequences of identified risks to understand their severity and prioritize mitigation efforts.

This involves evaluating how risks could affect project outcomes, financial performance, and operational stability.

Subsequent Steps (for context):

Developing a Risk Profile: Creating a comprehensive overview of risks, their likelihood, and impact.

Allocating Resources: Based on the risk profile and impact assessment.

Executing Strategy: Implementing the risk management plan once all factors are considered.

Conclusion: Estimating the likely impact is crucial to develop an effective risk management process, ensuring appropriate resources and strategies are applied.

References:

“The Essentials of Risk Management” by Michel Crouhy, Dan Galai, and Robert Mark

ISO 31000 standards on risk management