Outline a basic risk assessment process for a new venture.

• A. Identify risks, assess likelihood and impact, and create a single mitigation plan with no review.
• B. Ignore minor risks and focus on opportunities only.
• C. Identify risks, assess likelihood and impact, prioritize by severity, implement controls, monitor, and review regularly.
• D. Document risks and hope they vanish over time.

Answer: (C)

A basic risk assessment process starts with identifying what could go wrong for the new venture, then evaluating how likely each risk is and how big an impact it would have. Next, you prioritize these risks by how severe they are, so you can focus on the most significant threats first. After that, you put in controls or mitigation steps to reduce either the chance of the risk occurring or its impact. Finally, you continuously monitor the risks and review the effectiveness of your controls on a regular basis, updating them as circumstances change. This approach keeps managing risk proactive and adaptive rather than passive. The other options fall short because they either ignore the need for ongoing review, focus only on opportunities, or rely on hoping risks disappear instead of actively managing them.