Risk Management

Extracted Attributes

• Scope

  Addresses both risks (negative consequences) and opportunities (potential benefits)

• Purpose

  Minimize potential losses, maximize opportunities, ensure safety, compliance, operational efficiency, protect assets, reputation, and profitability

• Evolution

  Evolved from a traditional defensive role to a strategic function integral to planning and decision-making

• Core Process

  Identification, evaluation, prioritization, minimization, monitoring, and control of risks

• Sources of Risks

  Uncertainty in international markets, political instability, project failures, legal liabilities, credit risk, accidents, natural causes and disasters, deliberate attack from an adversary

• Professional Roles

  Risk Manager, Risk Analyst

• Application Contexts

  Project management, security, engineering, industrial processes, financial portfolios, actuarial assessments, public health and safety, medical devices, corporate finance

• Definition (ISO 31000)

  The effect of uncertainty on objectives

• Retail Trader Application

  Fixed percentage position sizing, risk-to-reward frameworks to avoid large drawdowns and support consistent decision-making

• Threat Management Strategies

  Avoiding, reducing negative effect or probability, transferring to another party, retaining/accepting consequences

• Opportunity Management Strategies

  Increasing likelihood or impact, sharing

Risk management

Risk management is the identification, evaluation, and prioritization of risks, followed by the minimization, monitoring, and control of the impact or probability of those risks occurring. Risks can come from various sources (i.e, threats) including uncertainty in international markets, political instability, dangers of project failures (at any phase in design, development, production, or sustaining of life-cycles), legal liabilities, credit risk, accidents, natural causes and disasters, deliberate attack from an adversary, or events of uncertain or unpredictable root-cause. Retail traders also apply risk management by using fixed percentage position sizing and risk-to-reward frameworks to avoid large drawdowns and support consistent decision-making under pressure. Two types of events are analyzed in risk management: risks and opportunities. 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 International Organization for Standardization. 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. Strategies to manage threats (uncertainties with negative consequences) 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. The opposite of these strategies can be used to respond to opportunities (uncertain future states with benefits). 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", and then develop plans to minimize and/or mitigate any negative (financial) outcomes. Risk analysts support the technical side of the organization's risk management approach: once risk data has been compiled and evaluated, analysts share their findings with their managers, who use those insights to decide among possible solutions. See also Chief Risk Officer, internal audit, and Financial risk management § Corporate finance.

Web Search Results

• Risk management - Wikipedia

  Risk management is the identification, evaluation, and prioritization of risks, followed by the minimization, monitoring, and control of the impact or probability of those risks occurring. Risks can come from various sources (i.e, threats "Threat (security)")) including uncertainty in international markets, political instability, dangers of project failures (at any phase in design, development, production, or sustaining of life-cycles), legal liabilities, credit risk, accidents, natural causes [...] For medical devices, risk management is a process for identifying, evaluating and mitigating risks associated with harm to people and damage to property or the environment. Risk management is an integral part of medical device design and development, production processes and evaluation of field experience, and is applicable to all types of medical devices. The evidence of its application is required by most regulatory bodies such as the US FDA. The management of risks for medical devices is [...] ### Finance [edit] Main article: Financial risk management As applied to finance, risk management concerns the techniques and practices for measuring, monitoring and controlling the market- and credit risk (and operational risk) on a firm's balance sheet, due to a bank's credit and trading exposure, or re a fund manager's portfolio value; for an overview see Finance § Risk management.

• Risk Management Techniques: 4 Essential Approaches - Hyperproof

  At its core, risk management is the art and science of identifying, analyzing, and responding to risks that have the potential to impact an organization’s operations and objectives. It is a critical component of strategic management, helping businesses navigate the uncertainties of the external environment while safeguarding their assets and capitalizing on opportunities arising from these uncertainties. [...] Risk management techniques are systematic approaches or methods used to identify, assess, and mitigate risks associated with various activities, processes, or business decisions. These techniques minimize potential losses and maximize opportunities while ensuring safety, compliance, and operational efficiency. The multifaceted nature of risks today requires a diverse set of risk management techniques, each tailored to address specific risks and their potential impacts on the organization. [...] Risk management has evolved beyond its traditional defensive role to a strategic function integral to planning and decision-making processes. By aligning risk management strategies with business objectives, organizations can ensure that their risk appetite aligns with their overall vision and goals. This strategic alignment empowers businesses to harness the positive aspects of risk, driving innovation and facilitating growth in an increasingly complex and unpredictable market.

• Your Complete Guide to Risk Management Strategies - Metricstream

  Risk management is the structured process of identifying, evaluating, and responding to risks that could impact an organization's objectives. It enables organizations to minimize losses, seize opportunities, and improve decision-making by understanding the uncertainties that surround their operations. [...] Risk management is the structured process of identifying, evaluating, and responding to risks that could impact an organization's objectives. It enables organizations to minimize losses, seize opportunities, and improve decision-making by understanding the uncertainties that surround their operations. [...] According to ISO 31000, risk is defined as the “effect of uncertainty on objectives.” Risk management, therefore, is not only about avoiding threats — it’s about navigating uncertainty in a way that aligns with strategic goals.

• What Is Risk Management & Why Is It Important? - HBS Online

  DOWNLOAD NOW ## What Is Risk Management? Risk management is the systematic process of identifying, assessing, and mitigating threats or uncertainties that can affect your organization. It involves analyzing risks’ likelihood and impact, developing strategies to minimize harm, and monitoring measures’ effectiveness.

• What Is Risk Management? - IBM

  Risk management is an integral component of any business strategy. It helps businesses and individuals protect against financial expenses, inefficiencies, reputational damage and other potential losses. The root causes of risks are both internal (such as human error or system failures) and external circumstances (such as global crises, climate change or technological advancements). When unforeseen events occur, organizations must bear the consequences. [...] Business operations Security # What is risk management? ## Authors Amanda McGrath Staff Writer IBM Think Alexandra Jonker Staff Editor IBM Think ## What is risk management? #### Risk management is the process of identifying, assessing and addressing any financial, legal, strategic and security risks to an organization. [...] Risk management is a nonstop process that adapts and changes over time. Repeating and monitoring the process can help organizations keep up to date on new risks. By continuously monitoring risks and adapting risk management strategies, organizations can better protect their assets, reputation and profitability in the long term. ## Types of risk management Several specialties exist within risk management. ### Cyber risk management