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Further to my previous question about the definition of risk; what is a relevant definition of risk management?

If if not explicitly put forward as a definition, many organisations hint at what RM is; the following is the Institute Of Risk Management's 'definition':

It is the process whereby organisations methodically address the risks attaching to their activities with the goal of achieving sustained benefit within each activity and across the portfolio of all activities.

Do you agree with this? Personally I find this bland, do you have a better alternative?

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The Wikipedia entry for risk management is:

Risk management can be considered 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.

One useful element of this definition is that it describes both the process of managing risk, as well as the explicit reference to opportunities. It's worth noting the Chinese word for risk is represented by two symbols. One means danger and the other one means opportunity.

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There are many definitions of risk and risk management. The definition set out in ISO Guide 73 is that risk is the “effect of uncertainty on objectives”. In order to assist with the application of this definition, Guide 73 also states that an effect may be positive, negative or a deviation from the expected, and that risk is often described by an event, a change in circumstances or a consequence.

This definition links risks to objectives. Therefore, this definition of risk can most easily be applied when the objectives of the organisation are comprehensive and fully stated.

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