Risk Management: Identifying, Assessing, and Responding to Risks
Classified in Law & Jurisprudence
Written at on 
English with a size of 1.12 KB.
The formal process by which risk factors are systematically identified, assessed, and responded to. Risk management concentrates on identifying and controlling areas or events that have the potential of causing unwanted change.
The Main Objective of Risk Management
The main objective of risk management is to detect, analyze, and control the risks.
Detection of Risks
Involves identifying the threats and vulnerabilities that can affect the organization's assets. It is essential to have experience for the identification of risks as they can originate from random sources and don't follow a fixed pattern. Detection is often the toughest part as risks can often be overlooked.
Analysis of Risk
Deals with the collection and calculation of data regarding risk exposure. It is essential for the company to make appropriate decisions and manage risks. Accurate analysis of the risk helps in implementing more effective solutions.
Control of Risk
Deals with making decisions after monitoring the surroundings to ensure that the older threats and vulnerabilities are effectively countered.