- "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."
Process of continuously monitoring identified risks and assessing their effectiveness of mitigation efforts.
Risk Identification: The process of identifying potential risks that may impact a business or project.
Risk Assessment: A systematic approach to evaluating the likelihood and possible consequences of identified risks.
Risk Analysis: A process of examining the identified risks and their potential impact on the business or project.
Risk Mitigation: The process of reducing or eliminating identified risks.
Risk Response Planning: Developing contingency plans to address potential risks that may not be mitigated.
Risk Communication: The process of sharing risk information with stakeholders to ensure they are aware of the risks and their potential impact on the project or business.
Risk Monitoring: The process of tracking identified risks and their impact on the business or project.
Risk Reporting: Providing ongoing updates to stakeholders on the status of risks and any changes to the level of risk.
Risk Escalation: When a risk cannot be mitigated or resolved at the project or team level, it is escalated to higher levels of management.
Risk Budgeting: The process of estimating financial resources required to mitigate or manage identified risks.
Risk Culture: The way an organization perceives and manages risks.
Risk Policies and Procedures: Formal documentation outlining the process and responsibilities involved in identifying, assessing, mitigating, and monitoring risks within an organization.
Risk Metrics: Quantitative measures used to express the likelihood and impact of a given risk.
Risk Ownership: The process of assigning a specific individual to be responsible for managing a particular risk.
Risk Tolerance: The acceptable level of risk that a business or project is willing to bear.
Financial Risk Monitoring: This type of risk monitoring is concerned with overseeing financial risks to the business, such as market fluctuation, exchange rate risks, and liquidity risks.
Operational Risk Monitoring: This type of risk monitoring aims to identify and analyze operational risks that affect business processes, such as employee safety, errors, and system failures.
Strategic Risk Monitoring: This type of risk monitoring involves assessing risks that arise due to changes in industry trends, market developments, global events, and competitive landscape.
Compliance Risk Monitoring: This type of risk monitoring is concerned with ensuring that the company meets regulatory and compliance requirements and avoids legal penalties.
IT Risk Monitoring: This type of risk monitoring aims to identify and mitigate risks associated with information technology systems, networks, and data privacy.
Environmental Risk Monitoring: This type of risk monitoring aims to identify risks that arise from environmental factors, such as weather patterns, natural disasters, and climate change.
Reputation Risk Monitoring: This type of risk monitoring involves assessing the impact on the business if its reputation is damaged, such as by negative media coverage, scandal, or public opinion.
Human Resource Risk Monitoring: This type of risk monitoring involves monitoring the risks associated with personnel, such as employee turnover, talent acquisition, and workforce planning.
Country Risk Monitoring: This type of risk monitoring involves analyzing the risks associated with operating in different geographical locations, such as political instability, economic conditions, and cultural differences.
Supply Chain Risk Monitoring: This type of risk monitoring involves managing risks associated with suppliers and vendors, including disruption of supplies, quality issues, and reputational risks.
- "...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."