Risk Management Strategies
Statistics & Risk Management
Risk Management Strategies
Statistics & Risk Management
Encarta World English Dictionary defines Risk Management as an analysis of possible loss, or the profession or technique of determining, minimizing, and preventing accidental loss in a business by taking safety measures and buying insurance.
Risk management can be defined as a two-step process. First, determining what risks are present. Then, handling those risks in a way that meets the goals that management has set forth for the organization.
Risk management occurs anytime management analyzes and attempts to quantify the potential for losses and then takes action or inaction depending on their analysis. Risk management is important to all businesses. It can mean disaster for companies who do not incorporate risk management correctly. Our latest recession in 2008 is a good example of this. We can blame most of the recession on bad credit risk management of financial firms. Many business have gone bankrupt due to inadequate risk management.
Over the years many major events in history have developed risk management into what it is today. The evolution of risk management has been shaped by major catastrophes such as the Great Depression, global warming, Three Mile Island, Exxon Valdez, Gulf Oil Spill, etc. Increasing frequencies of natural disasters in populated areas has created new studies on the causes, effects, and predictions which in turn make up what risk management is all about.
Created with SoftChalk
