Risk is defined as ‘an uncertain event or set of events that, should it occur, will have an effect on the achievement of objectives. Risk is measured by the combination of the probability of a perceived threat or opportunity occurring and the magnitude of its impact on objectives.’ All organizations, including temporary ones such as those concerned with programs or projects, will encounter uncertain events when trying to achieve their objectives. These uncertain events may arise inside or outside the organization.
The term ‘Risk management' refers to the systematic application of principles, an approach, and a process to the tasks of identifying and assessing risks, and then planning and implementing risk responses. This provides a disciplined environment for proactive decision-making.
The first step in risk management is risk identification. Once a risk has been identified, it must be defined in a Risk Statement for those who will decide how to control it. This Risk Statement is a critical part of Risk Management.
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The term ‘Risk management' refers to the systematic application of principles, an approach, and a process to the tasks of identifying and assessing risks, and then planning and implementing risk responses. This provides a disciplined environment for proactive decision-making.
The first step in risk management is risk identification. Once a risk has been identified, it must be defined in a Risk Statement for those who will decide how to control it. This Risk Statement is a critical part of Risk Management.
Learn more through the video.
Please don't forget to like and comment below this section after watching the video.
Thank You
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