Review of the Nature and Benefits of Risk Management

As discussed in previous lessons, there are many benefits of risk management. Those benefits include not only avoiding risk all together, but avoiding unnecessary risk, and carefully managing those risks the organization has decided to take on. For many businesses, the higher the level of risk, the higher the rewards that may be achieved. Risk management offers a strategic method of gaining a return and at the same time lowering risk as much as possible using a number of calculated methods and strategies. Risk management is a process which makes sure that objectives are more likely to be achieved, damaging events will be less likely to happen, and good things will be more likely to be achieved. It is not a process for avoiding risk all together, but rather a way to manage risk, and should be used to maximize opportunities presented and minimize the adverse effects. 

 

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