Identifying potential risks involves several steps: 1. Environmental Scanning: Monitor the external environment for potential threats such as economic downturns, natural disasters, or technological changes. 2. Internal Analysis: Evaluate internal processes, systems, and operations to identify vulnerabilities. 3. SWOT Analysis: Use tools like SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) to identify risks. 4. Engage Stakeholders: Involve employees, suppliers, and other stakeholders in identifying potential risks.