Risk management

(redirected from Risk assessment)
Also found in: Dictionary, Thesaurus, Medical, Legal, Acronyms, Encyclopedia, Wikipedia.
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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.

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.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
Define the context and objectives of the risk assessment;
Traditionally, risk-assessment experts use their knowledge of risks applicable to the pipeline industry or rely on pipeline incident statistics to enable the risk assessment. With the availability of PBD, potential risks can be identified through statistics, according to certain rules or criteria.
The sea change began in 2001 with NAVAUDSVC's first corporate DON risk assessment and really began to build steam in June 2004, when the SECNAV signed the OPB charter.
The USDHHS/FDA-USDA/FSIS quantitative risk ranking risk assessment on L.
description of OMB's draft Risk Assessment Bulletin.
- To discuss implementing a BSA/AML/OFAC risk assessment program at your organization
The objectives of the meeting are to review new and emerging information on PFAS and to formulate a roadmap for a risk assessment approach for PFAS.
Hayes: Risk assessment is required for compliance with the ANSI/PMMI B155.1-2016 standard and for compliance with the EU machinery directive 2006/42/EC.
State Financial Investigation Agency supported the initiative of the Regional Project Coordinator of the European Union to invite international expert Todor Kolarov, who made presentations and outlined the main steps for conducting a national risk assessment and developing a National Strategy.
ISLAMABAD -- Under its outreach programme, the SECP held awareness sessions on anti-money laundering/countering financing of terrorism (AML/CFT) obligations and terrorism financing risk assessment for its regulated sectors.
The cybersecurity capabilities of a company may be reviewed using cyber risk assessments. The overarching goal of a cyber risk assessment is to identify any deficiencies in cybersecurity that could pose material risks to the business.

Full browser ?