“The identification, evaluation, control and prevention, and transfer of risk.” Some other definitions include (a) The protection of assets, earnings, liabilities and people of an enterprise with maximum efficiency and at minimum cost. (b) The identification an evaluation of the threats to the expectations of an organization and the development of means whereby the expectations will be fulfilled in the most efficient manner by removing or reducing those threats. (c) The identification, measurement and economic control of risk that threaten the assets an earnings of a business or other enterprise. (d) Risk Management is the identification, assessment and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities. (e) Risk Management is the process of measuring, or assessing, risk and developing strategies to manage it. Strategies include avoiding the risk, reducing the negative effect of the risk, transferring the risk to another party and accepting some or all of its consequences. (f) Traditional risk management focuses on risks emanating from physical or legal causes (e.g., natural disasters or fires, accidents, death and lawsuits. (g) Financial risk management focuses on risks that can be managed using traded financial instrument. (h) For nonprofit organizations, the definition can read: The identification, measurement and economic control of risk that threaten the continued provision of essential goods and services.
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A management discipline whose goal is to protect the assets and profits of an organization by reducing the potential for loss before it occurs, and financing, through Insurance and other means, potential exposures to catastrophic loss such as acts of God, human error or court judgments. In practice, the process consists of logical steps: risk or exposure identification; measurement and evaluation of exposures identified; control of those exposures through elimination and/or reduction; and financing the remaining exposures so that the organization, in the event of a major loss, can continue to function without severe hardship to its financial stability.
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A process that involves assessing all possible causes of loss to a company and recommending how to avoid, reduce, or transfer the risk, whether through insurance coverage or through another means.
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MEDICAL, US: For financial aspects of health care benefits, administrative procedures to reduce the bad effects of financial loss by recognizing possible sources of loss, measuring the consequences if a loss takes place, and adopting controls to cut down actual loss or their effects.
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The process of handling pure risk by way of reduction, elimination, or transfer of risk, with the latter commonly achieved through insurance.
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UK: The purpose of risk management is to limit the organisation’s exposure to risk to an acceptable level taking account of probability of the loss occurring, its impact or both. The principles can be directed at limiting adverse outcomes or achieving desirable ones. Procedures involving risk identification; analysis and measurement of risk (risk assessment); selection of control measures and measures of financing risk (risk treatment); implementation of control; monitoring and updating control measures. Risk control and risk financing are at the heart of an iterative process aimed at reducing the likelihood and severity of loss.