Risk management

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Related to Risk assessment: Risk analysis

Risk management

The process of identifying and evaluating risks and selecting and managing techniques to adapt to risk exposures.

Risk Management

The process of identifying risks to an investment and, if possible, mitigating them. The first stage of risk management is determining the types and magnitudes of risk. For example, a risk manager might look at a bond and identify the possibility of default as a risk and evaluate the likelihood of that scenario. The second stage is taking steps to remedy risk, insofar as it is possible. In the above example, the risk manager might recommend buying other bonds to offset the risk of default on any single bond. Sometimes risk cannot be mitigated; in that case, risk managers evaluate how central the investment is to one's investment goals and risk tolerance. Generally speaking, investors seek the highest possible return at the lowest possible risk. Risk management helps them achieve this goal by showing how their investments may be affected and finding ways to alleviate the situation.

Risk management.

Risk management is a set of strategies for analyzing potential risks and instituting policies and procedures to deal with them. The work of assessing the possibilities, setting priorities, and finding cost-effective solutions is also described as business continuity planning.

In a business environment, some risks, such as economic pressures or technology meltdowns, are universal while others are unique to a particular venture or physical location.

Large companies may use a combination of strategies to manage risk, including buying insurance, creating redundant systems, diversifying physical locations or core businesses, and establishing other hedges.

For an individual investor, risk can be managed in several ways: insuring at least a portion of your portfolio, allocating your assets across classes, diversifying your holdings, and hedging with derivative products.

risk management

A systematic approach to identifying insurable and noninsurable risks, evaluating the risk of loss versus the cost of insurance, and minimizing the possibility of loss through well-planned and regularly followed systems and procedures. Especially in construction, which typically has the very highest premiums for workers' compensation insurance, well-planned and well-executed risk management programs can result in significant savings on premiums.

References in periodicals archive ?
Internationally, influenza risk assessment and risk management are separate functions.
Even if an IT risk assessment stops short of making recommendations, the client has received various benefits, including identifying conditions for inherent risk of loss, corruption, incompleteness, theft or misappropriation of critical information; providing the first step in building walls of defense around its critical information; documenting its IT infrastructure; providing the foundation for a disaster recovery and business continuity plan; and aiding in the performance evaluation of the technical support personnel.
FSIS conducted the risk assessment to develop solid information on: the relationship between the prevalence and level of generic Listeria on food contact surfaces and the prevalence and level of Listeria monocytogenes in ready-to-eat meat and poultry products.
If I fail to make an appropriate risk assessment, I can lose the order that may keep my people working, or worse, maybe get the order that can place my whole operation at risk for its very survival.
Toxicology Excellence for Risk Assessment (TERA) is a nonprofit organization dedicated to the best use of toxicity dam for risk values.
The challenge to mandatory risk assessments was brought to the court by the Inmate Welfare Committee at B.
Has a risk assessment of the legal liabilities been made?
These included presentations on the Clinton administration, OSHA reform, EPA agenda, S Corporation tax burdens, risk assessment and policy changes affecting small manufacturers.
The first tool in the Suite, the FSA Hard IP Quality Risk Assessment Tool, collects information about an IP vendor, its design methodology and the IP under evaluation, to enable risk assessment across seven criteria: IP design, integration, verification, process technology, product documentation, reliability and test.
EPA 2002) and a risk assessment by the Massachusetts Department of Environmental Protection (Mass DEP 2004) considered this dose to be a LOAEL (lowest observed adverse effect level).
A lower control risk assessment (shown on the right side of the flowchart).

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