Rewrite the following complex sentence into simpler terms.
A systematic approach begins with the identification of risks and the company's ability to manage them.
The company first needs to identify risks and decide if it can handle them.
Below is an instruction that describes a task. Write a response that appropriately completes the request.

### Instruction:
Rewrite the following complex sentence into simpler terms.

### Response:
The company first needs to identify risks and decide if it can handle them.