Risk management - how to protect yourself?

What is Risk?

The possibility of any unlikely event to occur is called risk.

Risk Management

Risk Management is the identification, assessment, and prioritization of risks followed by economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events.

Where Risks can come from?

Risks can come from uncertainty in financial markets, project failures, legal liabilities, credit risk, accidents, natural causes and disasters as well as deliberate attacks from an adversary.


What should Risk management do?

• Risk management should create value.
• Risk management should be an integral part of organizational processes.
• Risk management should be part of decision making.
• Risk management should explicitly address uncertainty.
• Risk management should be systematic and structured.
• Risk management should be based on the best available information.
• Risk management should be tailored.
• Risk management should take into account human factors.
• Risk management should be transparent and inclusive.
• Risk management should be dynamic, iterative and responsive to change.
• Risk management should be capable of continual improvement and enhancement.


Types of Risk management:

Some of the Risk management types are:
• credit risk management
• financial risk management
• information risk management
• operational risk management
• Technology risk management