What is Risk Management ?
Risk management is the process of identifying, assessing, and prioritizing risks followed by the coordinated application of resources to minimize, monitor, and control the probability or impact of unfortunate events. Essentially, it involves understanding potential risks that could affect a project, organization, or investment and taking steps to mitigate those risks. Here’s a breakdown of the risk management process: Risk Identification : Determine what risks could potentially affect the project or organization. This could involve brainstorming, expert judgment, and reviewing historical data. Risk Assessment : Evaluate the identified risks in terms of their likelihood of occurring and their potential impact. This helps in prioritizing which risks need more attention. Risk Analysis : Study the identified risks to understand their nature and impact more deeply. This often involves quantifying risks to determine their potential effects. Risk Control : Develop strategies to mitigate ...