Risk Management
Risk Management
Risk Management (pronunciation: /rɪsk mænɪdʒmənt/) is the process of identifying, assessing, and controlling threats to an organization's capital and earnings. These threats, or risks, could stem from a wide variety of sources, including financial uncertainty, legal liabilities, strategic management errors, accidents, and natural disasters.
Etymology
The term "Risk Management" is derived from the combination of two words: "Risk" and "Management". "Risk" comes from the early Italian risicare, which means 'to dare'. In this context, risk is a choice rather than a fate. The term "Management" comes from the Old French mesnage, or "managing a household," and is related to the Italian maneggiare (to handle — especially tools), and the Latin manus (hand).
Related Terms
- Risk: The probability or threat of quantifiable damage, injury, liability, loss, or any other negative occurrence that is caused by external or internal vulnerabilities, and that may be avoided through preemptive action.
- Management: The organization and coordination of the activities of a business in order to achieve defined objectives.
- Risk Assessment: The identification, evaluation, and estimation of the levels of risks involved in a situation, with the aim of determining what measures to take.
- Risk Mitigation: The process of developing actions and strategies intended to minimize the impact of threats to a project.
- Risk Analysis: The process of identifying and analyzing potential issues that could negatively impact key business initiatives or critical projects in order to help organizations avoid or mitigate those risks.
See Also
- Enterprise Risk Management
- Operational Risk Management
- Financial Risk Management
- Project Risk Management
References
- International Organization for Standardization (ISO). (2018). ISO 31000:2018 Risk management — Guidelines. Geneva, Switzerland: ISO.
- Hubbard, D. (2009). The Failure of Risk Management: Why It's Broken and How to Fix It. John Wiley & Sons.
External links
- Medical encyclopedia article on Risk Management
- Wikipedia's article - Risk Management
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