Who is primarily responsible for risk identification in Traditional Risk Management (TRM)?

In Traditional Risk Management (TRM), the risk manager plays a crucial role in the process of risk identification. This individual is specifically trained and equipped to recognize and assess potential risks that could impact the organization. The risk manager utilizes various methods and tools, such as risk assessment frameworks, to systematically identify risks across different areas of the business.

The risk manager's responsibilities typically include gathering input from various stakeholders, conducting risk assessments, and ensuring that the organization has a comprehensive understanding of the risks it faces. This focused approach allows for more thorough identification and evaluation of risks, contributing to the overall risk management strategy.

While all employees are often encouraged to be vigilant about risks in their work environment and can assist in identifying potential issues, and management sets the tone for risk culture, the primary responsibility for coordinating and leading the risk identification process falls to the risk manager. Their specialized knowledge and structured approach make them pivotal in ensuring that risks are not overlooked and that a proactive stance is taken in managing potential threats to the organization.