Risk management

(redirected from Risk Management Planning)
Also found in: Dictionary, Medical, Encyclopedia.

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 ?
The 1998 Legislature adopted the Florida Accidental Release Prevention and Risk Management Planning Act, F.
CHAPTER 11 The Risk-Wise Risk Management Planning Process.
Successful risk management planning also requires staff involvement.
Mapping Application for Response and Planning of Local Operational Tasks (MARPLOT) and the census document LANDVIEW will be showcased to provide information for hazards analysis, risk management planning and economic/demographics.
A property insurance policy without ordinance or law coverage will leave you exposed to financial loss, which must be addressed in your future risk management planning.
Rich Corbett, executive vice president of ECS Underwriting, said: "For large corporations seeking innovative and financially rewarding solutions to their environmental liabilities, Bob's proven track record in developing successful risk transfer programs will be a tremendous asset in their risk management planning.

Full browser ?