- Risk management is the process of evaluating the chance of loss or harm and then taking steps to combat the potential risk.
- An example of risk management is when a bank employee reviews a potential loan to determine what the chances are that the buyer won't pay it back in order to decide how to proceed with granting the loan and how much to charge in interest.
- An example of risk management is when a person evaluates the chances of having major vet bills and decides whether to purchase pet insurance.
- The process of determining the maximum acceptable level of overall risk to and from a proposed activity, then using risk assessment techniques to determine the initial level of risk and, if this is excessive, developing a strategy to ameliorate appropriate individual risks until the overall level of risk is reduced to an acceptable level.
This term relates very specifically to the field of study denoted by the term and as such is a usage specific term. The formal definition of risk is used.
risk management - Computer Definition
risk management - Legal Definition
The process of assessing risk and acting in such a manner, or prescribing policies and procedures, so as to avoid or minimize loss associated with such risk.