- "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, assessment, and mitigation of potential risks to an organization.
Risk Identification: Process of identifying and analyzing potential risks that could negatively impact a business.
Risk Assessment: Process of evaluating the likelihood and severity of identified risks and prioritizing them for mitigation.
Risk Mitigation: Process of taking action to reduce or eliminate identified risks.
Risk Transfer: Process of transferring the financial burden of a identified risk to another party, such as through insurance.
Risk Monitoring: Process of continuously monitoring identified risks and assessing their effectiveness of mitigation efforts.
Risk Reporting: Process of communicating identified risks, mitigation efforts, and their effectiveness to relevant stakeholders.
Regulatory Compliance: The process of ensuring a business is adhering to relevant laws and regulations related to risk management.
Crisis Management: Process of managing a business's response to an unexpected event, such as a natural disaster, cyberattack, or other crisis.
Business Continuity Planning: Process of creating a plan to ensure a business can continue operating in the event of a disruption or crisis.
Cybersecurity Risk Management: Process of identifying and mitigating risks related to digital security, such as data breaches or cyber attacks.
Market Risk Management: Process of identifying and mitigating risks related to market fluctuations impact on a business, such as changes in commodity prices or currency exchange rates.
- "...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."