- "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 transferring the financial burden of a identified risk to another party, such as through insurance.
Risk assessment: The process of identifying and analyzing potential risks that a business may face.
Risk identification: The process of recognizing potential risks that a business may face.
Risk mitigation: The techniques used to reduce or eliminate the risks associated with a particular situation.
Insurance: A contract between a business and an insurance provider that transfers the financial risk associated with a particular event or situation.
Liability insurance: Coverage that protects a business from financial losses resulting from lawsuits that arise from the actions of the company or its employees.
Property insurance: Coverage that protects a business from financial losses resulting from damage or destruction of its property.
Workers' compensation insurance: Coverage that provides benefits to employees who are injured or become ill as a result of their job.
Reinsurance: The process of transferring a portion of an insurance policy from one insurer to another to reduce the financial risk associated with that policy.
Indemnification: The process of transferring the financial risk associated with a particular situation from one party to another.
Risk pooling: The process of grouping together multiple risks and insuring them as a single entity to reduce the financial risk associated with each individual risk.
Risk financing: The process of identifying and securing the financial resources necessary to manage a particular risk.
Risk retention: The decision to accept and manage the financial risk associated with a particular situation rather than transferring it to an insurance provider.
Risk transfer agreement: A contract between two parties, typically a business and an insurance provider, that outlines the terms under which the financial risk associated with a particular situation will be transferred from one party to the other.
Risk management plan: A comprehensive document that outlines a business's strategies for identifying, assessing, mitigating, and managing risks.
Business interruption insurance: Coverage that provides financial compensation to a business if it is forced to suspend operations due to an unexpected event or circumstance.
Cyber insurance: Coverage that protects a business from financial losses resulting from cyber attacks, data breaches, and other digital security threats.
Excess and umbrella insurance: Additional insurance coverage that supplements an existing policy and provides additional protection against financial losses.
Claims management: The process of managing claims filed against a business, including the investigation, evaluation, and settlement of those claims.
Risk transfer techniques: Strategies used to transfer the financial risk associated with a particular situation, including insurance, indemnification, and risk pooling.
Risk transfer pricing: The process of evaluating the cost and benefits associated with various risk transfer strategies to determine the most effective and efficient approach for a business.
Insurance: Involving the transfer of risk from an individual or organization to an insurance company in exchange for a premium payment.
Hedging: The use of financial instruments such as options, futures, or swaps to protect against potential losses.
Reinsurance: A form of insurance that involves one insurance company transferring some of its risk to another insurance company.
Risk Retention: A strategy where a business accepts the risk associated with its activities and does not seek to transfer it to another party.
Contractual Transfer: A method through which the responsibility for a risk is shifted from one party to another through the use of contractual agreements, such as indemnification clauses in contracts.
Financial Diversification: The practice of holding a variety of investments to minimize the impact of a specific risk on the portfolio.
Non-Insurance Transfer: The use of alternative methods to transfer risk, such as warranties or service agreements.
Risk Avoidance: A strategy that involves eliminating activities or assets that expose a business to risk.
Risk Reduction: A strategy that aims to reduce the likelihood or impact of a risk through proactive measures, such as safety protocols or investing in protective equipment.
Captive Insurance: A type of insurance where a business creates its own insurance company to insure itself against specific types of risk.
- "...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."