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Definition of

risk management

  • 1.

    actions intended to reduce or eliminate risks the variety of activities undertaken by an organization to control and minimize threats to the continuing efficiency, profitability, and success of its operations. The process of risk management includes the identification and analysis of risks to which the organization is exposed, the assessment of potential impacts on the business, and deciding what action can be taken to eliminate or reduce risk and deal with the impact of unpredictable events causing loss or damage. Risk management strategies include taking out insurance against financial loss or legal liability and introducing safety or security measures.

  • 2.

    understanding and dealing with inevitable risks the process of understanding and managing the risks that an organization is inevitably subject to in attempting to achieve its corporate objectives. For management purposes, risks are usually divided into categories such as operational, financial, legal compliance, information, and personnel.

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Definitions of ’risk management’ and meaning of ’risk management’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’risk management’ and other financial terms with our online QFINANCE Financial Dictionary.

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