Define risk management and explain its importance? Risk management is

QUESTION

Define risk management and explain its importance?
Risk management is the identification,assessment, and prioritization of risks followed by coordinated andeconomical application of resources to minimize, monitor, andcontrol the probability and/or impact of unfortunate events. Riskscan come from 1.uncertainty in financial markets2.project failures3.legal liabilities4.credit risk5.accidents6.natural causes and disasters as well as deliberate attacksfrom an adversary.Several risk management standards have been developedincluding the Project Management Institute, the National Instituteof Science and Technology, actuarial societies, and ISO standards.Methods, definitions and goals vary widely according to whether therisk management

thod is in the context of project management,security, engineering, industrial processes, financial portfolios,actuarial assessments, or public health and safety.The strategies to manage risk include 1. transferring the risk to another party, avoiding the risk,reducing the negative effect of the risk, and accepting some or allof the consequences of a particular risk. http://en.wikipedia.org/wiki/Risk_managementFor more matter go to wikipedia. Keep smiling

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