BCC LTD Corporation Situation Analysis and Problem Statement Risk management is the most important part of any organization to deal with the risks that may arise when a new project is started. It should be a first concern when the decision is made. Risk management is the practice of considering your exposure to risk and deciding how to best manage that exposure. The idea behind risk management is to decide whether the benefit outweighs the risk. This process will help you identify risks that might normally be overlooked, so when problems arise, they don't surprise you by having a plan in place for how to fix them. Risk management would help identify and then manage threats that could severely impact or bring down the organization. “This could be done by examining the organization's operations, identifying potential threats to the organization and the likelihood of their occurrence, and then taking appropriate action to address the most likely threats” (McNamara, C., 1999). Context of the situation (phase 1)BCC LTD is a large multinational conglomerate that provides goods and services to an international customer base through a number of different and unrelated businesses.