BNET Business Dictionary
Business Definition for: Risk Management
- 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.
- 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.
Wiktionary Definition for: Risk Management
- The process of determining the maximum acceptable level of overall risk to and from a proposed activity, then using risk assessment techniques to determine the initial level of risk and, if this is excessive, developing a strategy to ameliorate appropriate individual risks until the overall level of risk is reduced to an acceptable level.
Additional Resources
- Investigating Enterprise Risk Management III: Custom-Tailored Solutions Using Enterprise Risk Management
- One of many big companies has realized that its traditional approach to risk management has been fragmented, treating risks as disparate and easily compartmentalized. Through Enterprise Risk Management, it was found out that the overall risk management program was not adequately integrated with the identification, evaluation, and optimization of growth...
- White papers 2000-01-01
- Why Can't Boards Get Risk Management Right?
- Presumably, Sir James Crosby was trying to protect the FSA from further embarrassment by stepping down from his job as the regulator's deputy chair. But in resigning, he's brought to light the reason: that he's said to have ignored a red alert from a risk manager while in charge of...
- Blog posts 2009-02-11
- What is This Thing Called Risk Management?
- Most people equate risk management with insurance. Insurance is one aspect of risk management, but certainly not the only one. Then there are the operations managers who equate risk management with disaster recovery. Even though insurance and disaster recovery are necessary parts of risk management, both will hopefully never be...
- White papers 2003-01-01
- Perceptions And Practices Of Project Risk Management: Aggregating 300 Project Manager Years
- Project risk management practices, tools, and techniques are one of the newly emerging knowledge areas with great interest in the project management community. Originally evolved from the financial sector, project risk management encompasses all aspects of project risk including financial, technical, managerial, and organizational risk. However, there is a need...
- White papers 2003-09-18
- Risk Management and the Photogrammetric Project Manager
- Although risks can open up avenues of opportunity, most people focus on the potentially negative aspects of risk on a project's cost or schedule. The authors hereby suggest an alternative approach, one that is based on the Project Management Body of Knowledge PMBOK and identifies the following elements of the...
- White papers 2003-01-01
- Investigating Enterprise Risk Management : Part Two
- This case study pertains to Tower Telecom that grew rapidly during its first three years of operation. Its initial risk management plan was unable to adequately handle the growing number of business risks it faced. Eventually, a major crime loss wakened the company's management to emerging and previously undiscovered exposures...
- Case studies 2000-01-01
- Enterprise Risk Management - 2
- This article is second part review of Enterprise Risk Management ERM, which focuses on helping companies develop broader risk management strategies that support the maximization of shareholder wealth. ERM is a comprehensive process and perspective for helping companies develop risk management strategies that support the maximization of shareholder wealth. It...
- White papers 1999-01-01
- Dynamic Risk Management: Theory and Evidence
- This article is about on one business strategy known as "risk management". It present and tests an infinite horizon, continuous time model of a firm that can dynamically adjust the use and maturity of risk management instruments whose purpose is to reduce product price uncertainty thereby mitigating financial distress...
- White papers 2003-02-09
- Basic Frameworks for Risk Management
- This article provides an overview of frameworks for risk management using the NERAM risk management framework as a benchmark for comparison. The report illustrates how a "standard" risk management framework can be adapted to meet the risk management objectives of a range of agencies. The article also describes how a...
- White papers 2003-01-01
- Investigating Enterprise Risk Management : Part Three
- This case study pertains to Tower Telecom, which is a composite of several actual companies and is not a real business entity. It examines how having a risk management program that did not keep pace with its growing needs and exposures effected negatively, Tower suffered a major employee crime loss...
- White papers 2000-01-01
- Enterprise Risk Management - 1
- The white paper discusses the overall implications of Enterprise Risk Management and what steps to take in beginning the process. One of the most important objectives of today's business leader is to maximize shareholder value. To succeed in this goal, executives must efficiently manage the factors that affect the value...
- White papers 1999-01-01
- What is Missing from the RMIS Design? Why Enterprise Risk Management Is not Working
- Many risk managers have attempted to take enterprise risk management ERM from a slick consulting pitch to a practical management system. But while ERM has helped many of these professionals improve the strategic structure of their risk financing programs, few have fully achieved their ambitions. One obstacle is the risk...
- White papers 2003-01-01
- Risk Management Software Spells Relief For Bankers
- From the executive summary: ‘When dealing with risk management issues, bank technology officers should be allowed to claim reimbursement for their expenses. Monitoring the high volume and rapid pace of bank risk management software offerings deserves a computer program of its own. Moreover, risk management applications have become increasingly complex,...
- White papers 2001-06-01
- Enterprise Risk Management: Practical Implementation Ideas
- With the heightened focus on risk management, it has become increasingly clear that traditional risk management approaches do not adequately identify, evaluate and manage risk. Under enterprise risk management ERM, the focus is on integrating risk management with existing management processes, identifying future events that can have both positive and...
- White papers 2005-04-25
- Enterprise Risk Management - Integrated Framework
- The underlying premise of enterprise risk management is that every entity exists to provide value for its stakeholders. All entities face uncertainty, and the challenge for management is to determine how much uncertainty to accept as it strives to grow stakeholder value. Uncertainty presents both risk and opportunity, with the...
- White papers 2004-09-01
- SELF-TAUGHT IN RISK MANAGEMENT SUCCESS.
- Reflecting on her risk management career at Storage Technology Corp., Sheryl A. Pixler says she is most proud of raising the visibility of risk management and demonstrating that risk management brings value to the corporation. That has not been an Reflecting on her...
- Research articles 1999-04-12
- Global Briefs.(Miller Insurance Group Ltd. forms risk-management consulting company)(Brief Article)
- London insurance broker Miller Insurance Group Ltd. has formed a risk management consulting company. The new company, Dawson Risk Management Services, will provide independent due diligence and risk management services, principally in the energy, mar London insurance broker Miller Insurance Group Ltd. has formed a ...
- Research articles 2001-07-23
- Fast Risk Evaluation and Profiling (REP): A New Risk Management Tool
- The deregulation of the telecommunications industry in 1996 and the subsequent increase in the number of companies there in have led to a significantly more competitive market. Concurrently, the landscape of telecommunications services and applications has greatly expanded and, as a result, new opportunities have arisen for these various firms...
- White papers 2003-01-01
- Executive Summary: Operational Risk Management
- This study focuses upon the development of Operational Risk Management as a distinct internal function with its own process, structure, tools and measures. This new trend is bringing a formal process and increased transparency to one of the oldest risks. Operational risk is not a new risk. In fact, it...
- White papers 2003-01-01
- Matrix Risk Management
- The global deregulating energy market faces a problem: risk management. Up until now, the methodologies and mathematics behind the measurement of energy risk have been handed down from academia and the financial markets. Over the years, it has become increasingly obvious that these methodologies are not necessarily appropriate for application...
- White papers 2002-01-01
