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Establishing the Risk Context:

Establishing the Risk Context is one of the most important steps in the risk management process. It establishes a firm basis for the subsequent risk assessment, allows the risk management activity to be planned and structured and also resolves out risk criteria which are the basis for making decisions about the level of risk which is tolerable. However, despite its importance, the step is often handled badly rushed, leading to an incomplete assessment of risks and poor risk treatment.

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