- "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."
Assessing and managing risks that may impact the organization's ability to achieve its goals.
Risk Identification: The systematic process for uncovering risks, both internal and external, that could affect an organization.
Risk Assessment: The process of evaluating the likelihood and impact of identified risks.
Risk Mitigation: The actions an organization takes to minimize or eliminate the impact of identified risks.
Risk Monitoring and Control: The ongoing process of tracking risks and implementing procedures to control and mitigate any negative effects.
Risk Communication: The process of sharing risk-related information with stakeholders.
Operational Risk Management: The process of identifying, assessing, and controlling day-to-day operational risks.
Financial Risk Management: The process of managing financial exposures to risk, including credit, market, and liquidity risks.
Legal and Regulatory Risk Management: The process of managing risks related to laws, regulations, and compliance.
Enterprise Risk Management: The process of managing risks across an entire organization.
Insurance and Risk Financing: The process of managing risks through insurance policies and other financial instruments.
Financial Risk Management: This is the process of reducing financial risks using various hedging instruments like futures, options, swaps etc. It is mainly used to mitigate financial risks such as credit risks, market risks, liquidity risks and operational risks.
Enterprise Risk Management: This is the process of identifying, assessing, and managing risks that can impact an organization's strategic goals. These risks can be operational, financial, strategic, regulatory or reputational.
Environmental Risk Management: This involves identifying, assessing and managing risks arising from environmental degradation, natural disasters, and climate change. This includes actions such as reducing pollution, developing renewable energy sources, and strengthening disaster preparedness.
Operational Risk Management: This is the process of managing risks that arise from the day-to-day operations of a business, such as data breaches, system failures, fraud, and human error. It involves controls, processes, and policies to mitigate such risks.
Project Risk Management: This involves identifying, analyzing, and mitigating risks associated with a specific project. It focuses on the timely and cost-effective completion of the project while minimizing risks.
Supply Chain Risk Management: This involves identifying and managing risks that can impact the supply chain, such as transportation delays, supplier bankruptcy or quality issues. It aims to ensure efficient operations while minimizing disruptions and costs.
Credit Risk Management: This involves assessing and managing the risks associated with lending and investment decisions. It includes credit analysis, underwriting, and monitoring loan portfolios to minimize credit losses.
Reputational Risk Management: This involves protecting and enhancing the reputation of an organization, including addressing negative publicity, brand damage, and social media backlash.
Legal Risk Management: This involves identifying and mitigating legal risks associated with compliance issues, contract disputes, intellectual property rights, and litigation. It aims to protect the organization from legal liabilities and associated costs.
Health and Safety Risk Management: This involves identifying and mitigating risks related to employee safety, health, and environmental factors. It includes safety policies, training, and compliance with regulations.
Crisis Risk Management: This involves developing a plan to manage unexpected events, such as natural disasters, cyber-attacks, or pandemics. It aims to address critical issues, minimize disruption, and restore normal operations as soon as possible.
Strategic Risk Management: This involves identifying and mitigating risks that can impact the achievement of an organization's strategic objectives. It includes analyzing market trends, competition, and other factors that can impact the organization's long-term success.
- "...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."