Follow us on

Defining Risk Management

Defining Risk Management

Everyone Needs Risk Management

  What is risk? Some say risk is a nasty four letter word that can ruin your life. Risk management is serious business. As an industry, it includes over 30,000 companies.
[dt_divider style=”thin” /]
The Steps in Managing Risk Here is a four-step process you can follow to manage your risk.
1) Assess 2) Categorize 3) Consider 4) Implement
[dt_divider style=”thin” /]
Risk management is not only for companies, but for individuals as well. Did you know there are more than 18 different risks you can face as an investor?
[dt_divider style=”thin” /]
Risk management should:
  • create value – resources expended to mitigate risk should be less than the consequence of inaction
  • be an integral part of organizational processes
  • be part of decision making process
  • explicitly address uncertainty and assumptions
  • be a systematic and structured process
  • be based on the best available information
  • be tailorable
  • be transparent and inclusive
  • be dynamic and responsive to change
  • be capable of continual improvement and enhancement
  • be continually or periodically re-assessed
[dt_divider style=”thin” /]
Article source: Forbes
Related Posts