What should an organization do to control risks effectively?

Implementing risk responses based on impacts is crucial for effective risk management within an organization. This approach involves a systematic assessment of potential risks, evaluating both their likelihood and the consequences they may have on the organization. By understanding the scope and nature of these risks, an organization can prioritize its responses and allocate resources to mitigate or manage those that could have the highest impact.

This method also allows for tailored strategies to be developed, ensuring that the organization's risk management efforts are both efficient and effective. It creates a proactive environment where the organization can identify vulnerabilities and address them before they escalate into significant issues.

In contrast, ignoring low-risk factors does not contribute to a comprehensive risk management strategy, as even low-level risks can accumulate or lead to more significant problems. Establishing emergency procedural teams is a reactive approach that may not address underlying risks adequately. Focusing solely on high-level strategic planning might overlook the operational nuances and specific risks that arise within various aspects of the organization, leading to blind spots in risk management.