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The American Heritage Dictionary of Business Terms » risk management
risk management
risk management definition - business
risk management
Identifying potential risks and making decisions so as to reduce the possibility and/or impact of the risks. For example, an investor attempts to reduce risk by choosing conservative investments or assembling a diversified portfolio. Businesses sometimes use futures contracts to avoid risk in the foreign exchange market. Household products companies try to avoid major mistakes by introducing new products in test markets.
The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.
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