CAS Practice Exam 2025 – Complete Study Guide

The initial step in the risk management process involves scanning the environment to identify existing and potential liability loss exposures. This step is crucial because it serves as the foundation for understanding the broader context in which risks are present, including changes in laws, emerging trends, and shifts in societal behaviors that could influence liability risks.

Scanning the environment helps gather information about various factors, such as the organization's operations, industry standards, regulatory requirements, and historical claims data. This comprehensive view allows risk managers to delineate the areas of liability that might impact the organization.

By starting with this environmental scan, risk managers can then move on to subsequent steps, such as analyzing the identified risks, implementing treatment strategies, and establishing ongoing monitoring and review processes. Each of these subsequent steps will be more effective and informed when rooted in a thorough understanding gained from the initial scanning phase.