- "Risk management is the identification, evaluation, and prioritization of risks... followed by coordinated and economical application of resources to minimize, monitor, and control the probability or impact of unfortunate events or to maximize the realization of opportunities."
The identification and mitigation of potential risks that could negatively impact a corporation's financial condition or operations, including insurance and contingency planning.
Understanding the Definition of Risk Management: This topic involves learning about the definition of risk management, its purpose, and fundamental risk concepts.
Identifying Risks: This topic involves learning how to identify and assess risk factors in the business environment, including internal and external risks.
Classification of Risks: Different types of risks can impact a business, including financial, operational, strategic, and reputational risk. This topic involves learning about these different types of risks and their importance in risk management.
Assessing Risks: This topic involves learning how to quantitatively and qualitatively assess risk probability and impact.
Risk Treatment: Developing strategies for managing identified risks is critical for effective risk management. This topic involves learning about different approaches to risk treatment, such as risk avoidance, mitigation, and transfer.
Risk Monitoring and Control: Once risk management strategies have been implemented, they must be continuously monitored and updated. This topic involves learning about the importance of ongoing risk monitoring and control.
Risk Reporting and Communication: To maintain effective risk management practices, it's important to have a transparent system of reporting and communication. This topic involves learning about best practices for risk communication and reporting.
Risk Culture: A strong risk culture is critical to the success of any risk management process. This topic involves learning about the importance of a culture of risk awareness and management within a corporation.
Risk Management Frameworks and Standards: Various frameworks and standards have been developed to provide guidance to businesses in developing effective risk management practices. This topic involves learning about some of the most common frameworks and standards, such as ISO 31000 and COSO.
Risk Management in Specific Industries: Various industries may have unique risk factors that require specialized risk management strategies. This topic involves learning about risk management best practices in specific industries, such as healthcare, finance, and construction.
Operational Risk Management: The process of identifying, assessing, and prioritizing risks associated with day-to-day operations of a corporation.
Financial Risk Management: The identification, assessment, and prioritization of risks related to the financial activities of a corporation, including investments, interest rates, foreign exchange rates, and mergers and acquisitions.
Strategic Risk Management: Focuses on the long-term strategic direction of a corporation, including assessing and prioritizing risks associated with new product development, expanding into new markets, and adjusting to changes in the economic and regulatory environment.
Reputational Risk Management: The process of identifying, assessing, and managing risks associated with a corporation's reputation, including negative publicity, product recalls, and customer complaints.
Compliance Risk Management: Focuses on ensuring that a corporation operates within legal, regulatory, and ethical guidelines by identifying, assessing, and prioritizing risks associated with non-compliance.
Environmental Risk Management: The process of evaluating and prioritizing risks associated with a corporation's impact on the environment through production processes, waste management, and emissions.
Security Risk Management: The identification, assessment, and prioritization of risks related to the physical and electronic security of a corporation, including theft, fraud, cyber-attacks, and natural disasters.
Legal Risk Management: The process of evaluating and managing risks related to legal disputes, regulatory compliance, and litigation.
Business Continuity Risk Management: The identification, assessment, and prioritization of risks associated with disruptions to a corporation's operations, including natural disasters, power outages, and cyber-attacks.
Disaster Risk Management: The process of evaluating and managing risks associated with natural disasters such as hurricanes, earthquakes, and floods, and the impact they may have on the corporation's operations.
- "...risks (defined in ISO 31000 as the effect of uncertainty on objectives)..."
- "Risks can come from various sources including uncertainty in international markets, threats from project failures, legal liabilities, credit risk, accidents, natural causes and disasters, deliberate attack from an adversary, or events of uncertain or unpredictable root-cause."
- "Negative events can be classified as risks while positive events are classified as opportunities."
- "Risk management standards have been developed by various institutions, including the Project Management Institute, the National Institute of Standards and Technology, actuarial societies, and ISO standards."
- "Strategies to manage threats typically include avoiding the threat, reducing the negative effect or probability of the threat, transferring all or part of the threat to another party, and even retaining some or all of the potential or actual consequences of a particular threat."
- "As a professional role, a risk manager will 'oversee the organization's comprehensive insurance and risk management program, assessing and identifying risks that could impede the reputation, safety, security, or financial success of the organization'."
- "Risk Analysts support the technical side of the organization's risk management approach... analysts share their findings with their managers, who use those insights to decide among possible solutions."
- "Methods, definitions and goals vary widely according to whether the risk management method is in the context of project management, security, engineering, industrial processes, financial portfolios, actuarial assessments, or public health and safety."
- "Certain risk management standards have been criticized for having no measurable improvement on risk, whereas the confidence in estimates and decisions seems to increase."
- "Opportunities are uncertain future states with benefits."
- "See also Chief Risk Officer, internal audit, and Financial risk management ยง Corporate finance."
- "Risk managers develop plans to minimize and/or mitigate any negative (financial) outcomes."
- "The primary goal of risk management is to minimize the probability or impact of unfortunate events or maximize the realization of opportunities."
- "Risk evaluations are conducted to assess and identify risks that could impede the reputation, safety, security, or financial success of the organization."
- "Managers use insights from risk analysts to decide among possible solutions."
- "The main components of risk management include the identification, evaluation, and prioritization of risks, followed by the application of resources to minimize, monitor, and control the probability or impact of events."
- "Negative consequences of threats can include financial, reputational, safety, security, or operational impacts."
- "ISO standards provide quality management standards to help work more efficiently and reduce product failures."
- "Negative events can be classified as risks while positive events are classified as opportunities."