Risk Recording Phase: Transactional Risk Recording in Business Activities

Introduction

In the previous chapters, we proposed an approach for transactional risk identification, assessment, evaluation and management in relation to business activities. Depending on the outcome of the analysis of each phase, if the risk assessing agent initiates and completes the business association with the risk assessed agent, then, based on his experience, he should complete the risk recording phase. This phase ascertains the Actual FailureLevel (AFL) or the actual performance risk that was present in the risk assessing agent’s business activity with the risk assessed agent. As explained next, in the context of business activities this phase is important as it will provide important inputs to the process of risk assessment in future business activities.