Firms are faced with business risks irrespective of which industry does the firm operate in. Business risks are always bound to occur and it is upon the management to determine the ways in to mitigate itself against such risks in order to protect its business. Risk is integral to opportunities and threats which may impact expected outcome Kaye, (2009) Lowe, (2010). Can an organization use the following procedure during the risk management? The firm has to identify the risk which are likely to occur and begin the planning the process of protect itself.