Which is a component of the risk-management process?

The component of the risk-management process referred to in the correct answer involves "Assessing Risk." This step is crucial as it helps organizations to identify potential risks that could adversely affect their operations and objectives. During risk assessment, various factors are evaluated, including the likelihood of a risk occurring and the potential impact it could have. This assessment aids in understanding the nature and level of risk faced, allowing an organization to prioritize its resources for risk management effectively.

Risk assessment forms the foundation for the subsequent steps of the risk management process, such as monitoring, responding to, and framing risk. By thoroughly assessing risks, organizations can develop strategies to mitigate, accept, or transfer those risks appropriately. This stage is essential for creating a comprehensive understanding of the risk landscape before implementing any further action.