Risk Management – Definition

Cite this article as:"Risk Management – Definition," in The Business Professor, updated September 10, 2019, last accessed November 26, 2020, https://thebusinessprofessor.com/lesson/risk-management-definition/.

Back To: INSURANCE & RISK MANAGEMENT

What is Risk Management?

When used in finance, risk management refers to a set of processes tailored towards the reduction of risks, threats, uncertainties, and unfavorable events that can impede performance. It also examines how risks can be avoided or tolerated.

The main processes associated with risk management are identification, evaluation, and analysis. Once a risk is identified, measures are put in place to reduce the impact of the risk.

The most common areas of risk include:

  • Economic risk
  • Financial Risk
  • Credit risk
  • Project Risks
  • Market Risks
  • Technical risks
  • Social Risks
  • Operational Risks
  • Safety risks
  • Legal Risks

References for “Risk Management

https://en.wikipedia.org/wiki/Risk_management

https://www.investopedia.com › Investing › Financial Analysis

https://searchcompliance.techtarget.com/definition/risk-management

https://economictimes.indiatimes.com › Definitions › Economy

www.businessdictionary.com/definition/risk-management.html

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