- "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 process of identifying potential risks and developing strategies to mitigate or avoid them.
Risk identification: The process of identifying potential risks and hazards that could impact a project or organization.
Risk assessment: Analyzing the potential impact and likelihood of identified risks.
Risk mitigation: Developing and implementing strategies to reduce the likelihood or impact of risks.
Risk transfer: Shifting risk to another party (e.g. insurance).
Risk acceptance: Deciding to accept the risk and its consequences.
Risk communication: Sharing information about risks with stakeholders.
Risk monitoring and reporting: Keeping track of risks and reporting changes in their status.
Risk analysis: Using data and statistics to analyze risks.
Risk modeling: Building models to understand, predict, and manage risks.
Failure modes and effects analysis (FMEA): A structured approach to identifying and evaluating potential failures in a system.
Hazard analysis: Identifying potential hazards and their effect on a system or organization.
Root cause analysis (RCA): Identifying the underlying causes of failures or errors.
Quantitative risk assessment: Assessing risks based on numeric values and probability.
Qualitative risk assessment: Assessing risks based on subjective judgments and opinions.
Business continuity planning: Developing plans to ensure the continuity of critical business functions in the event of a disruption or disaster.
Crisis management: Developing plans and procedures to respond to emergencies and minimize their impact.
Risk governance: The process of establishing policies and procedures for managing risks within an organization.
Risk culture: The shared beliefs and behaviors within an organization surrounding risk management.
Risk appetite: The level of risk an organization is willing to accept.
Risk tolerance: The level of risk an organization can tolerate without causing unacceptably negative consequences.
Hazard Identification and Analysis: This process involves identifying potential hazards that could occur during the product life cycle.
Fault Tree Analysis (FTA): This is a technique used to identify the various events that may cause a particular hazard.
Risk Assessment: This involves the evaluation of the probability and impact of identified hazards and risks.
Risk Mitigation: This process focuses on developing strategies to prevent or reduce the likelihood and impact of potential hazards.
Risk Monitoring and Control: This includes monitoring and controlling hazards throughout the project lifecycle.
Failure Modes and Effects Analysis (FMEA): This is a technique used to identify potential failures in a system and the effects that they may have on the product.
Root Cause Analysis: This technique is used to identify the specific cause of a particular hazard or failure.
Safety Engineering: This involves designing products and systems with safety as the primary concern.
Human Factors Engineering: This considers the interaction between humans and the system and aims to ensure that the system is designed with human performance in mind.
Quality Management: This involves ensuring that the product or system meets the required quality standards and is produced consistently.
Cybersecurity Risk Management: This includes identifying and managing risks that arise from cyber threats and vulnerabilities.
Environmental Risk Management: This involves identifying and managing environmental risks associated with the product or system.
- "...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."