Risk management

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Related to Risk reduction: Risk Avoidance

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 ?
For developing countries in particular, where 90 percent of disaster victims are concentrated, disaster risk reduction is a great challenge with a view toward sustainable development and adaptation to climate change," he said.
However, we are concerned that the government's work in raising awareness about the plan now needs to be matched by effective delivery of risk reduction services on the ground, in all parts of Wales.
The risk reduction is less in the older women because they generally had more favorable nonmodifiable risk factors, the authors noted.
Main Generic Responsibilities of a Disaster Risk Reduction Unit
It's a mistake to regulate too stringently, which causes excess resources to be devoted to a particular type of risk reduction, or not stringently enough, which leads to risks that could be avoided at an affordable cost.
The trials that contained predominantly women failed to demonstrate a significant risk reduction.
Keywords--community-friendly interventions, HIV risk reduction, injection drug use, outcome durability, substance abuse treatment
Sexual risk reduction interventions do not inadvertently increase the overall frequency of sexual behaviour: a meta-analysis of 174 studies with 116, 735 participants.
The findings, the researchers conclude, "underscore the urgency for renewed initiatives and policies to increase HIV testing and risk reduction among young [men who have sex with men}, especially those who are black.
As is often the case with risk reduction efforts, the only certainty is that it is easy to identify the costs and the inconvenience associated with the steps taken to prevent bad outcomes, in this case shifting efforts toward finding explosives and away from finding items such as small tools and scissors.
Another risk reduction measure for a 401(k) plan or profit sharing plan is to give participants control over the way their assets are invested.
Chlamydia: no proof of risk reduction, 89 million new cases annually, worldwide.