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.
Origin of risk-management
- 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.