Sometimes referred to as iterative risk management, the process can be divided into four stages, as illustrated in figure IV.l. Each quadrant represents one of the steps of the policy cycle, which encompasses formulation of objectives and assessment of risks, assessments of the effect of policy options-related decisions on the course of action, policy implementation, and monitoring and review of outcomes. At each stage, progress can be measured in terms of the quantity and quality of outcomes along each of the four axes: policy design, policy action, policy impact and policy understanding.