Risk Management is the process of measuring, or assessing risk and developing strategies to manage it.
“To be effective within an organisation, risk management should be an integrated part of the organisation's overall governance, management, reporting processes, policies, philosophy and culture.
The same risk management approach can be adopted for allactivities of an organisation including projects, defined functions, assets, and products or activities and will in turn strengthen the linkages between these activities and the organisation’s overall objectives.”
(Source:-the Draft ISO 31000, Introduction)
Types of risk (including threats and hazards)
- Corporate/Strategic risk
- Business/operational risk
- Technology risk
- Regulatory/compliance risk
- Security risk
- Environmental risk
- Financial risk
- Market/industry risk
- Political risk
- Emerging risks (may belong to any category)
Risk Management Options
There are five main ways that risks can be dealt with.
- accepting risk;
- reducing likelihood of event;
- reducing the consequences of event;
- transferring the risk;
- sharing the risk;