RISK MANAGEMENT

CONTENTS  DEFINITION  WHAT IS RISK  TYPES OF RISK  RISK MANAGEMENT PROCESS  APPROACHES TO RISK MANAGEMENT

DEFINITION  RISK MANAGEMENT IS A STRUCTURED APPROACH IN MANAGING UNCERTAINITY RELATED TO A THREATS, & IT INCLUDES RISK ASSESSMENT DEVELOPMENT OF STRATEGIES TO MANAGE IT.

WHAT IS RISK ?  UNCERTAINITY.  RISK IS THE POSSIBLITY OF ACTUAL OUTPUT BEING DIFFERENT FORM EXPECTED OUTPUT.  CHANCE OF LOSS.  PROBABLITY OF DIFFERENCE IN OUTPUT.

TYPES OF RISK 1. SYSTAMATIC RISK 2. UNSYSTAMATIC RISK 3. BUSINESS RISK 4. FINANCIAL RISK 5. INDUSTRY RISK 6. OPERATIONAL RISK 7. POLITICAL RISK 8. DISASTER RISK

RISK MANAGEMENT PROCESS 1. DETERMINING OBJECTIVES 2. IDENTIFYING RISKS 3. RISK EVALUATION 4. DEVELOPMENT OF POLICY 5. IMPLEMENTATION 6. REVIEW

APPROACHES TO RISK MANAGEMENT 1. RISK AVOIDANCE 2. RISK TRANSFER 3. RISK RETANTION 4. RISK SHARING 5. COMBINE RISK 6. SEPRATION

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