Risk Management Overview
Risk Management is a systematic strategic approach to minimizing an organization's exposure to risk.
A risk management system includes various policies, procedures and practices that work in unison to identify, analyze, evaluate, address and monitor risk.
Risk management information is used along with other corporate information, such as feasibility, to arrive at a risk management decision. Transferring risk to another party, lessening the negative affect of risk and avoiding risk altogether are considered risk management strategies. Traditional risk management works to reduce vulnerabilities that are associated with accidents and lawsuits, among others. Financial risk management focuses on minimizing risks through the use of financial tools and instruments including various trading techniques and financial analysis.