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 ?
Risk communication is defined as a science-based approach for communicating effectively in high-stakes, emotionally charged, controversial situations.
Four nationally recognized risk communication experts were asked to provide feedback on the modified hazard category language to ensure that it reflected risk communication science, theory, and practice.
Most risk communication articles focus on North America, with a few articles on Asian countries.
OPS is looking to these stakeholder groups to help develop general guidance in the areas of Protecting Communities, Protecting Transmission Pipelines and Risk Communication and have formed task teams around each of these areas.
The Food and Drug Administration's new Risk Communication Advisory Committee will be made up of 15 experts and patient advocates who will help communicate safety information on drugs, medical devices and other regulated products, according to a notice posted on the agency's Web site last week.
Other topics of the symposium include RoHS/WEEE impact on design; wireless telemetry; process development case studies; substrate materials for medical electronics; design challenges; environmental constraints; emerging technologies; advanced deanliness requirements; advanced packaging for medical electronics; reliability assessments; software security; safety & risk management; warranty analytics; risk communication and software regulation.
Many organizations, such as the Food and Agricultural Organization of the United Nations, the World Health Organization, and the Centers for Disease Control and Prevention, have determined that risk communication is one of the most important strategies to respond to an influenza pandemic.
Seligman represents our efforts to consolidate responsibility for developing Center-wide drug safety policy as well as coordinating our efforts in the area of risk communication.
What is it about risk communication that leads people to create lists of do's and don't's?
Mad cows and mother's milk: the perils of poor risk communication.

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