Risk management

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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 ?
Any episode of communication is complex (Berry 2007), more so if it involves risk communication.
The profound importance of country food makes the conduct of risk communication programs even more important, because the disruption of country food production, sharing, and consumption patterns can have serious effects on health and society in northern communities.
This is the bottom line of good risk communication.
It introduces basic concepts to acquaint novice users with the field of risk communication, yet it also offers experienced practitioners more complex information supported by diagrams and tables to assist their reading comprehension.
The media are an important part of risk communication.
The present study was designed to evaluate both the positive and negative effects of health risk messages and to provide practical suggestions for developing effective risk communications.
General practice registrar responses to the use of different risk communication tools in simulated consultations: a focus group study.
The continued growth of new technology will challenge the abilities of personnel working in both crisis communication and risk communication.
In the following pages, we examine the risk communication techniques at the heart of the dispute.
Although his roots are in academia, his risk communication and media relations seminars are booked farther in advance than most rock concerts.
Two initiatives, "The Risk Communication Act" (Brown/Moorhead) and the "Johnston Amendment" (Johnston/Tauzin), move the industry toward this goal.

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