CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Risk Management

Sundaram Textiles Ltd's risk team lists every event that could disrupt its cotton supply, such as monsoon failure, port strikes and supplier insolvency, by holding workshops with plant managers and procurement heads. At which stage of the risk management process is the team working?

The team is at the risk identification stage. Building a list of possible events that could disrupt cotton supply through workshops with managers is how risks are first recognised. Treatment, transfer and monitoring follow only after the risks have been identified and assessed.

ARisk identificationCorrect
BRisk treatment
CRisk monitoring
DRisk transfer

Explanation

Listing events that could affect objectives, using workshops and inputs from process owners, is risk identification. Treatment and transfer come after assessment, and monitoring is the later review of risks already treated.

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