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Risk management is the identification, evaluation, and prioritization of
risk In simple terms, risk is the possibility of something bad happening. Risk involves uncertainty Uncertainty refers to Epistemology, epistemic situations involving imperfect or unknown information. It applies to predictions of future events, to p ...

risk
s (defined in
ISO 31000 ISO 31000 is a family of standards relating to risk management Risk management is the identification, evaluation, and prioritization of risk In simple terms, risk is the possibility of something bad happening. Risk involves uncertainty about th ...
as ''the effect of uncertainty on objectives'') followed by coordinated and economical application of resources to minimize, monitor, and control the probability or impact of unfortunate events or to maximize the realization of opportunities. Risks can come from various sources including uncertainty in
international markets Globalization, or globalisation (English in the Commonwealth of Nations, Commonwealth English; American and British English spelling differences#-ise, -ize (-isation, -ization), see spelling differences), is the process of foreign relations, in ...
, threats from project failures (at any phase in design, development, production, or sustaining of life-cycles), legal liabilities, credit risk, accidents, natural causes and disasters, deliberate attack from an adversary, or events of uncertain or unpredictable root-cause. There are two types of events i.e. negative events can be classified as risks while positive events are classified as opportunities. Risk management
standards Standard may refer to: Flags * Colours, standards and guidons * Standard (flag), a type of flag used for personal identification Norm, convention or requirement * Standard (metrology), an object that bears a defined relationship to a unit of ...
have been developed by various institutions, including the
Project Management Institute The Project Management Institute (PMI) is a U.S.-based not-for-profit professional organization for project management. Overview PMI serves more than three million professionals including over 650,000 members in 213 countries and territories ar ...
, the
National Institute of Standards and Technology The National Institute of Standards and Technology (NIST) is a physical sciences Physical science is a branch of natural science that studies abiotic component, non-living systems, in contrast to life science. It in turn has many branches, ea ...
, actuarial societies, and ISO standards. Methods, definitions and goals vary widely according to whether the risk management method is in the context of project management, security,
engineering Engineering is the use of scientific principles to design and build machines, structures, and other items, including bridges, tunnels, roads, vehicles, and buildings. The discipline of engineering encompasses a broad range of more specializ ...
,
industrial processes Industrial processes are procedures involving chemical A chemical substance is a form of matter having constant chemical composition and characteristic properties. Some references add that chemical substance cannot be separated into its consti ...
, financial portfolios, actuarial assessments, or public health and safety. Strategies to manage threats (uncertainties with negative consequences) typically include avoiding the threat, reducing the negative effect or probability of the threat, transferring all or part of the threat to another party, and even retaining some or all of the potential or actual consequences of a particular threat. The opposite of these strategies can be used to respond to opportunities (uncertain future states with benefits). Certain risk management standards have been criticized for having no measurable improvement on risk, whereas the confidence in estimates and decisions seems to increase.


Introduction

Risk management appears in scientific and management literature since the 1920s. It became a formal science in the 1950s, when articles and books with “risk management” in the title also appear in library searches. Most of research was initially related to finance and insurance. A widely used vocabulary for risk management is defined by ''ISO Guide 73:2009'', "Risk management. Vocabulary." In ideal risk management, a prioritization process is followed whereby the risks with the greatest loss (or impact) and the greatest
probability Probability is the branch of mathematics Mathematics (from Greek: ) includes the study of such topics as numbers ( and ), formulas and related structures (), shapes and spaces in which they are contained (), and quantities and their c ...

probability
of occurring are handled first. Risks with lower probability of occurrence and lower loss are handled in descending order. In practice the process of assessing overall risk can be difficult, and balancing resources used to mitigate between risks with a high probability of occurrence but lower loss, versus a risk with high loss but lower probability of occurrence can often be mishandled. Intangible risk management identifies a new type of a risk that has a 100% probability of occurring but is ignored by the organization due to a lack of identification ability. For example, when deficient knowledge is applied to a situation, a
knowledge Knowledge is a familiarity or awareness, of someone or something, such as facts A fact is an occurrence in the real world. The usual test for a statement of fact is verifiability—that is whether it can be demonstrated to correspond to exp ...
risk materializes. Relationship risk appears when ineffective collaboration occurs. Process-engagement risk may be an issue when ineffective operational procedures are applied. These risks directly reduce the productivity of knowledge workers, decrease cost-effectiveness, profitability, service, quality, reputation, brand value, and earnings quality. Intangible risk management allows risk management to create immediate value from the identification and reduction of risks that reduce productivity. Opportunity cost represents a unique challenge for risk managers. It can be difficult to determine when to put resources toward risk management and when to use those resources elsewhere. Again, ideal risk management minimizes spending (or manpower or other resources) and also minimizes the negative effects of risks. Risk is defined as the possibility that an event will occur that adversely affects the achievement of an objective. Uncertainty, therefore, is a key aspect of risk. Systems like the Committee of Sponsoring Organizations of the Treadway Commission Enterprise Risk Management (COSO ERM), can assist managers in mitigating risk factors. Each company may have different internal control components, which leads to different outcomes. For example, the framework for ERM components includes Internal Environment, Objective Setting, Event Identification, Risk Assessment, Risk Response, Control Activities, Information and Communication, and Monitoring.


Risks vs. opportunities

Opportunities first appear in academic research or management books in the 1990’s. The first PMBoK
Project Management Body of Knowledge The Project Management Body of Knowledge (PMBOK) is a set of standard terminology and guidelines (a body of knowledge) for project management. The body of knowledge evolves over time and is presented in ''A Guide to the Project Management Body of ...
draft of 1987 doesn’t mention opportunities at all. Modern project management school does recognize the importance of opportunities. Opportunities have been included in project management literature since the 1990s, e.g. in PMBoK, and became a significant part of project risk management in the years 2000s, when articles titled “opportunity management” also begin to appear in library searches.
Opportunity management Opportunity management (OM) has been defined as "a process to identify business Business is the activity of making one's living or making money by producing or buying and selling products (such as goods and services). Simply put, it is "any a ...
thus became an important part of risk management. Modern risk management theory deals with any type of external events, positive and negative. Positive risks are called ''opportunities''. Similarly to risks, opportunities have specific mitigation strategies: exploit, share, enhance, ignore. In practice, risks are considered “usually negative”. Risk-related research and practice focus significantly more on threats than on opportunities. This can lead to negative phenomena such as
target fixation Target fixation is an attentional phenomenon observed in humans in which an individual becomes so focused on an observed object (be it a target or hazard) that they inadvertently increase their risk of colliding with the object. It is associated wit ...


Method

For the most part, these methods consist of the following elements, performed, more or less, in the following order: # Identify the threats # Assess the vulnerability of critical assets to specific threats # Determine the
risk In simple terms, risk is the possibility of something bad happening. Risk involves uncertainty Uncertainty refers to Epistemology, epistemic situations involving imperfect or unknown information. It applies to predictions of future events, to p ...

risk
(i.e. the expected likelihood and consequences of specific types of attacks on specific assets) # Identify ways to reduce those risks # Prioritize risk reduction measures The Risk management knowledge area, as defined by the
Project Management Body of Knowledge The Project Management Body of Knowledge (PMBOK) is a set of standard terminology and guidelines (a body of knowledge) for project management. The body of knowledge evolves over time and is presented in ''A Guide to the Project Management Body of ...
PMBoK, consists of the following processes: # Plan Risk Management - defining how to conduct risk management activities. # Identify Risks - identifying individual project risks as well as sources. # Perform Qualitative Risk Analysis - prioritizing individual project risks by assessing probability and impact. # Perform Quantitative Risk Analysis - numerical analysis of the effects. # Plan Risk Responses - developing options, selecting strategies and actions. # Implement Risk Responses - implementing agreed-upon risk response plans. In the 4th Ed. of PMBoK, this process was included as an activity in the Monitor and Control process, but was later separated as a distinct process in PMBoK 6th Ed.Morcov, Stefan (2021). Managing Positive and Negative Complexity: Design and Validation of an IT Project Complexity Management Framework. KU Leuven University. Available at https://lirias.kuleuven.be/retrieve/637007 # Monitor Risks - monitoring the implementation. This process was known as Monitor and Control in the previous PMBoK 4th Ed., when it also included the “''Implement Risk Responses''” process.


Principles

The
International Organization for Standardization The International Organization for Standardization (ISO ) is an international standard An international standard is a technical standard A technical standard is an established norm (social), norm or requirement for a repeatable technical task ...
(ISO) identifies the following principles of risk management: Risk management should: * Create
value Value or values may refer to: * Value (ethics) it may be described as treating actions themselves as abstract objects, putting value to them ** Values (Western philosophy) expands the notion of value beyond that of ethics, but limited to Western s ...
– resources expended to mitigate risk should be less than the consequence of inaction * Be an integral part of organizational processes * Be part of decision making process * Explicitly address uncertainty and assumptions * Be a systematic and structured process * Be based on the best available information * Be tailorable * Take human factors into account * Be transparent and inclusive * Be dynamic, iterative and responsive to change * Be capable of continual improvement and enhancement * Be continually or periodically re-assessed


Mild Versus Wild Risk

Benoit Mandelbrot Benoit B. Mandelbrot (20 November 1924 – 14 October 2010) was a Polish-born French-American mathematician A mathematician is someone who uses an extensive knowledge of mathematics Mathematics (from Ancient Greek, Greek: ) include ...
distinguished between "mild" and "wild" risk and argued that risk assessment and management must be fundamentally different for the two types of risk. Mild risk follows or near-normal
probability distribution In probability theory Probability theory is the branch of mathematics concerned with probability. Although there are several different probability interpretations, probability theory treats the concept in a rigorous mathematical manner by expre ...
s, is subject to
regression to the mean In statistics Statistics is the discipline that concerns the collection, organization, analysis, interpretation, and presentation of data. In applying statistics to a scientific, industrial, or social problem, it is conventional to begin wit ...

regression to the mean
and the , and is therefore relatively predictable. Wild risk follows
fat-tailed distribution A fat-tailed distribution is a probability distribution In probability theory and statistics Statistics is the discipline that concerns the collection, organization, analysis, interpretation, and presentation of data. In applying statist ...
s, e.g., Pareto or
power-law distributions 300px, An example power-law graph that demonstrates ranking of popularity. To the right is the 80–20 rule).">Pareto_principle.html" ;"title="long tail, and to the left are the few that dominate (also known as the Pareto principle">80–20 rule). ...
, is subject to regression to the tail (infinite mean or variance, rendering the law of large numbers invalid or ineffective), and is therefore difficult or impossible to predict. A common error in risk assessment and management is to underestimate the wildness of risk, assuming risk to be mild when in fact it is wild, which must be avoided if risk assessment and management are to be valid and reliable, according to Mandelbrot.


Process

According to the standard
ISO 31000 ISO 31000 is a family of standards relating to risk management Risk management is the identification, evaluation, and prioritization of risk In simple terms, risk is the possibility of something bad happening. Risk involves uncertainty about th ...
- "Risk management – Principles and guidelines on implementation," the process of risk management consists of several steps as follows:


Establishing the context

This involves: #observing the context #*the social scope of risk management #*the identity and objectives of
stakeholders Stakeholder may refer to: *Stakeholder (corporate), a group, corporate, organization, member, or system that affects or can be affected by an organization's actions *Project stakeholder, a person, group, or organization with an interest in a projec ...
#*the basis upon which risks will be evaluated, constraints. #defining a framework for the activity and an agenda for identification #developing an analysis of risks involved in the process #mitigation or solution of risks using available technological, human and organizational resources


Identification

After establishing the context, the next step in the process of managing risk is to identify potential risks. Risks are about events that, when triggered, cause problems or benefits. Hence, risk identification can start with the source of problems and those of competitors (benefit), or with the problem's consequences. * Source analysis – Risk sources may be internal or external to the system that is the target of risk management (use mitigation instead of management since by its own definition risk deals with factors of decision-making that cannot be managed). Some examples of risk sources are: stakeholders of a project, employees of a company or the weather over an airport. * Problem analysis – Risks are related to identified threats. For example: the threat of losing money, the threat of abuse of confidential information or the threat of human errors, accidents and casualties. The threats may exist with various entities, most important with shareholders, customers and legislative bodies such as the government. When either source or problem is known, the events that a source may trigger or the events that can lead to a problem can be investigated. For example: stakeholders withdrawing during a project may endanger funding of the project; confidential information may be stolen by employees even within a closed network; lightning striking an aircraft during takeoff may make all people on board immediate casualties. The chosen method of identifying risks may depend on culture, industry practice and compliance. The identification methods are formed by templates or the development of templates for identifying source, problem or event. Common risk identification methods are: * Objectives-based risk identification – Organizations and project teams have objectives. Any event that may prevent an objective from being achieved is identified as risk. * Scenario-based risk identification – In
scenario analysisScenario analysis is a process of analyzing future events by considering alternative possible outcomes (sometimes called "alternative worlds"). Thus, scenario analysis, which is one of the main forms of projection, does not try to show one exact pic ...
different scenarios are created. The scenarios may be the alternative ways to achieve an objective, or an analysis of the interaction of forces in, for example, a market or battle. Any event that triggers an undesired scenario alternative is identified as risk – see
Futures Studies 280px, Moore's law is an example of futurology; it is a statistical collection of past and present trends with the goal of accurately extrapolating future trends. Futures studies, futures research or futurology is the systematic, interdiscipl ...
for methodology used by
Futurists Futurists (also known as futurologists, prospectivists, Foresight (futures studies), foresight practitioners and horizon scanning, horizon scanners) are people whose specialty or interest is Futures studies, futurology or the attempt to systematic ...
. * Taxonomy-based risk identification – The taxonomy in taxonomy-based risk identification is a breakdown of possible risk sources. Based on the taxonomy and knowledge of best practices, a questionnaire is compiled. The answers to the questions reveal risks. * Common-risk checking – In several industries, lists with known risks are available. Each risk in the list can be checked for application to a particular situation. * Risk charting – This method combines the above approaches by listing resources at risk, threats to those resources, modifying factors which may increase or decrease the risk and consequences it is wished to avoid. Creating a
matrix Matrix or MATRIX may refer to: Science and mathematics * Matrix (mathematics), a rectangular array of numbers, symbols, or expressions * Matrix (logic), part of a formula in prenex normal form * Matrix (biology), the material in between a eukaryoti ...
under these headings enables a variety of approaches. One can begin with resources and consider the threats they are exposed to and the consequences of each. Alternatively one can start with the threats and examine which resources they would affect, or one can begin with the consequences and determine which combination of threats and resources would be involved to bring them about.


Assessment

Once risks have been identified, they must then be assessed as to their potential severity of impact (generally a negative impact, such as damage or loss) and to the probability of occurrence. These quantities can be either simple to measure, in the case of the value of a lost building, or impossible to know for sure in the case of an unlikely event, the probability of occurrence of which is unknown. Therefore, in the assessment process it is critical to make the best educated decisions in order to properly prioritize the implementation of the
risk management plan A risk management plan is a document that a project manager prepares to foresee risks, estimate impacts, and define responses to risks. It also contains a Risk matrix, risk assessment matrix. A risk is "an uncertain event or condition that, if it ...
. Even a short-term positive improvement can have long-term negative impacts. Take the "turnpike" example. A highway is widened to allow more traffic. More traffic capacity leads to greater development in the areas surrounding the improved traffic capacity. Over time, traffic thereby increases to fill available capacity. Turnpikes thereby need to be expanded in a seemingly endless cycles. There are many other engineering examples where expanded capacity (to do any function) is soon filled by increased demand. Since expansion comes at a cost, the resulting growth could become unsustainable without forecasting and management. The fundamental difficulty in risk assessment is determining the rate of occurrence since statistical information is not available on all kinds of past incidents and is particularly scanty in the case of catastrophic events, simply because of their infrequency. Furthermore, evaluating the severity of the consequences (impact) is often quite difficult for intangible assets. Asset valuation is another question that needs to be addressed. Thus, best educated opinions and available statistics are the primary sources of information. Nevertheless, risk assessment should produce such information for senior executives of the organization that the primary risks are easy to understand and that the risk management decisions may be prioritized within overall company goals. Thus, there have been several theories and attempts to quantify risks. Numerous different risk formulae exist, but perhaps the most widely accepted formula for risk quantification is: "Rate (or probability) of occurrence multiplied by the impact of the event equals risk magnitude."


Risk Options

Risk mitigation measures are usually formulated according to one or more of the following major risk options, which are: #Design a new business process with adequate built-in risk control and containment measures from the start. #Periodically re-assess risks that are accepted in ongoing processes as a normal feature of business operations and modify mitigation measures. #Transfer risks to an external agency (e.g. an insurance company) #Avoid risks altogether (e.g. by closing down a particular high-risk business area) Later research has shown that the financial benefits of risk management are less dependent on the formula used but are more dependent on the frequency and how risk assessment is performed. In business it is imperative to be able to present the findings of risk assessments in financial, market, or schedule terms. Robert Courtney Jr. (IBM, 1970) proposed a formula for presenting risks in financial terms. The Courtney formula was accepted as the official risk analysis method for the US governmental agencies. The formula proposes calculation of ALE (annualized loss expectancy) and compares the expected loss value to the security control implementation costs ( cost-benefit analysis).


Potential risk treatments

Once risks have been identified and assessed, all techniques to manage the risk fall into one or more of these four major categories: * Avoidance (eliminate, withdraw from or not become involved) * Reduction (optimize – mitigate) * Sharing (transfer – outsource or insure) * Retention (accept and budget) Ideal use of these
risk control strategiesRisk Control Strategies are the defensive measures utilized by IT and InfoSec communities to limit vulnerabilities and manage risk In simple terms, risk is the possibility of something bad happening. Risk involves uncertainty about the effects/imp ...
may not be possible. Some of them may involve trade-offs that are not acceptable to the organization or person making the risk management decisions. Another source, from the US Department of Defense (see link),
Defense Acquisition University The Defense Acquisition University (DAU) is a corporate universityA corporate university is any educational entity that is a strategic tool designed to assist its parent organization in achieving its goals by conducting activities that foster ind ...
, calls these categories ACAT, for Avoid, Control, Accept, or Transfer. This use of the ACAT acronym is reminiscent of another ACAT (for Acquisition Category) used in US Defense industry procurements, in which Risk Management figures prominently in decision making and planning. Similarly to risks, opportunities have specific mitigation strategies: exploit, share, enhance, ignore.


Risk avoidance

This includes not performing an activity that could present risk. Refusing to purchase a
property Property is a system of rights that gives people legal control of valuable things, and also refers to the valuable things themselves. Depending on the nature of the property, an owner of property may have the right to consume, alter, share, r ...
or business to avoid
legal liability In law Law is a system A system is a group of Interaction, interacting or interrelated elements that act according to a set of rules to form a unified whole. A system, surrounded and influenced by its environment, is described by its b ...
is one such example. Avoiding
airplane An airplane or aeroplane (informally plane) is a fixed-wing aircraft that is propelled forward by thrust from a jet engine, Propeller (aircraft), propeller, or rocket engine. Airplanes come in a variety of sizes, shapes, and wing configurati ...

airplane
flights for fear of
hijacking Hijacking may refer to: Common usage Computing and technology * Bluejacking, the unsolicited transmission of data via Bluetooth * Brandjacking, the unauthorized use of a company's brand * Browser hijacking * Clickjacking (including ''li ...
. Avoidance may seem like the answer to all risks, but avoiding risks also means losing out on the potential gain that accepting (retaining) the risk may have allowed. Not entering a business to avoid the risk of loss also avoids the possibility of earning profits. Increasing risk regulation in hospitals has led to avoidance of treating higher risk conditions, in favor of patients presenting with lower risk.


Risk reduction

Risk reduction or "optimization" involves reducing the severity of the loss or the likelihood of the loss from occurring. For example, sprinklers are designed to put out a
fire BBQ. Fire is the rapid oxidation of a material in the exothermic chemical process of combustion, releasing heat, light, and various reaction Product (chemistry), products. Fire is hot because the conversion of the weak double bond in molecula ...

fire
to reduce the risk of loss by fire. This method may cause a greater loss by water damage and therefore may not be suitable.
HalonHalon may refer to: * Haloalkane, or halogenoalkane, a group of chemical compounds consisting of alkanes with linked halogens (in particular, bromine-containing haloalkanes) * Halomethane fire extinguishing systems * Various compounds that have been ...
fire suppression systems may mitigate that risk, but the cost may be prohibitive as a
strategy Strategy (from Greek#REDIRECT Greek Greek may refer to: Greece Anything of, from, or related to Greece Greece ( el, Ελλάδα, , ), officially the Hellenic Republic, is a country located in Southeast Europe. Its population is approxim ...

strategy
. Acknowledging that risks can be positive or negative, optimizing risks means finding a balance between negative risk and the benefit of the operation or activity; and between risk reduction and effort applied. By effectively applying Health, Safety and Environment (HSE) management standards, organizations can achieve tolerable levels of
residual riskThe residual risk is the amount of risk or Risk, danger associated with an action or event remaining after natural or inherent risks have been reduced by risk controls. The general formula to calculate residual risk is : \text = (\text) - (\text) ...
. Modern software development methodologies reduce risk by developing and delivering software incrementally. Early methodologies suffered from the fact that they only delivered software in the final phase of development; any problems encountered in earlier phases meant costly rework and often jeopardized the whole project. By developing in iterations, software projects can limit effort wasted to a single iteration.
Outsourcing Outsourcing is an agreement in which one company hires another company to be responsible for a planned or existing activity that is or could be done internally, and sometimes involves transferring employees and assets from one firm A compan ...

Outsourcing
could be an example of risk sharing strategy if the outsourcer can demonstrate higher capability at managing or reducing risks. For example, a company may outsource only its software development, the manufacturing of hard goods, or customer support needs to another company, while handling the business management itself. This way, the company can concentrate more on business development without having to worry as much about the manufacturing process, managing the development team, or finding a physical location for a center.


Risk sharing

Briefly defined as "sharing with another party the burden of loss or the benefit of gain, from a risk, and the measures to reduce a risk." The term of 'risk transfer' is often used in place of risk sharing in the mistaken belief that you can transfer a risk to a third party through insurance or outsourcing. In practice if the insurance company or contractor go bankrupt or end up in court, the original risk is likely to still revert to the first party. As such, in the terminology of practitioners and scholars alike, the purchase of an insurance contract is often described as a "transfer of risk." However, technically speaking, the buyer of the contract generally retains legal responsibility for the losses "transferred", meaning that insurance may be described more accurately as a post-event compensatory mechanism. For example, a personal injuries insurance policy does not transfer the risk of a car accident to the insurance company. The risk still lies with the policy holder namely the person who has been in the accident. The insurance policy simply provides that if an accident (the event) occurs involving the policy holder then some compensation may be payable to the policy holder that is commensurate with the suffering/damage. Methods of managing risk fall into multiple categories. Risk retention pools are technically retaining the risk for the group, but spreading it over the whole group involves transfer among individual members of the group. This is different from traditional insurance, in that no premium is exchanged between members of the group up front, but instead losses are assessed to all members of the group.


Risk retention

Risk retention involves accepting the loss, or benefit of gain, from a risk when the incident occurs. True
self-insuranceSelf-insurance is a situation in which a person or business does not take out any third-party insurance Insurance is a means of protection from financial loss. It is a form of risk management, primarily used to hedge against the risk of a c ...
falls in this category. Risk retention is a viable strategy for small risks where the cost of insuring against the risk would be greater over time than the total losses sustained. All risks that are not avoided or transferred are retained by default. This includes risks that are so large or catastrophic that either they cannot be insured against or the premiums would be infeasible.
War War is an intense armed conflict between states State may refer to: Arts, entertainment, and media Literature * ''State Magazine'', a monthly magazine published by the U.S. Department of State * The State (newspaper), ''The State'' (new ...

War
is an example since most property and risks are not insured against war, so the loss attributed to war is retained by the insured. Also any amounts of potential loss (risk) over the amount insured is retained risk. This may also be acceptable if the chance of a very large loss is small or if the cost to insure for greater coverage amounts is so great that it would hinder the goals of the organization too much.


Risk management plan

Select appropriate controls or countermeasures to mitigate each risk. Risk mitigation needs to be approved by the appropriate level of management. For instance, a risk concerning the image of the organization should have top management decision behind it whereas IT management would have the authority to decide on computer virus risks. The risk management plan should propose applicable and effective security controls for managing the risks. For example, an observed high risk of computer viruses could be mitigated by acquiring and implementing antivirus software. A good risk management plan should contain a schedule for control implementation and responsible persons for those actions. According to
ISO/IEC 27001 ISO/IEC 27001 is an international standard on how to manage information security. The standard was originally published jointly by the International Organization for Standardization (ISO) and the International Electrotechnical Commission (IEC) in ...
, the stage immediately after completion of the
risk assessment Broadly speaking, a risk assessment is the combined effort of: # identifying and analyzing potential (future) events that may negatively impact individuals, assets, and/or the environment (i.e. hazard analysis A hazard analysis is used as the ...

risk assessment
phase consists of preparing a Risk Treatment Plan, which should document the decisions about how each of the identified risks should be handled. Mitigation of risks often means selection of
security controls Security controls are safeguards or countermeasure A countermeasure is a measure or action taken to counter or offset another one. As a general concept it implies precision, and is any technological or tactical solution or system (often for a ...
, which should be documented in a Statement of Applicability, which identifies which particular control objectives and controls from the standard have been selected, and why.


Implementation

Implementation follows all of the planned methods for mitigating the effect of the risks. Purchase insurance policies for the risks that it has been decided to transferred to an insurer, avoid all risks that can be avoided without sacrificing the entity's goals, reduce others, and retain the rest.


Review and evaluation of the plan

Initial risk management plans will never be perfect. Practice, experience, and actual loss results will necessitate changes in the plan and contribute information to allow possible different decisions to be made in dealing with the risks being faced.
Risk analysis Risk management is the identification, evaluation, and prioritization of risk In simple terms, risk is the possibility of something bad happening. Risk involves uncertainty Uncertainty refers to Epistemology, epistemic situations involving ...
results and management plans should be updated periodically. There are two primary reasons for this: # to evaluate whether the previously selected security controls are still applicable and effective # to evaluate the possible risk level changes in the business environment. For example, information risks are a good example of rapidly changing business environment.


Limitations

Prioritizing the ''risk management processes'' too highly could keep an organization from ever completing a project or even getting started. This is especially true if other work is suspended until the risk management process is considered complete. It is also important to keep in mind the distinction between risk and
uncertainty Uncertainty refers to Epistemology, epistemic situations involving imperfect or unknown information. It applies to predictions of future events, to physical measurements that are already made, or to the unknown. Uncertainty arises in partially ...

uncertainty
. Risk can be measured by impacts × probability. If risks are improperly assessed and prioritized, time can be wasted in dealing with risk of losses that are not likely to occur. Spending too much time assessing and managing unlikely risks is to be avoided. Unlikely events do occur but if the risk is unlikely enough to occur it may be better to simply retain the risk and deal with the result if the loss does in fact occur. Qualitative risk assessment is subjective and lacks consistency. The primary justification for a formal risk assessment process is legal and bureaucratic.


Areas


Finance

As applied to
financial accounting Financial accounting is the field of accounting Accounting or Accountancy is the measurement, processing, and communication of financial and non financial information about economic entity, economic entities such as businesses and corporat ...
, ''risk management'' is the technique for measuring, monitoring and controlling the financial or
operational risk Operational risk is "the risk of a change in value caused by the fact that actual losses, incurred for inadequate or failed internal processes, people and systems, or from external events (including legal risk), differ from the expected losses" ...
on a firm's
balance sheet In financial accounting Financial accounting is the field of accounting Accounting or Accountancy is the measurement, processing, and communication of financial and non financial information about economic entity, economic entities such a ...

balance sheet
, a traditional measure is the
value at risk Value at risk (VaR) is a measure of the risk of loss for investments. It estimates how much a set of investments might lose (with a given probability), given normal market conditions, in a set time period such as a day. VaR is typically used by fi ...

value at risk
(VaR), but there also other measures like
profit at risk Profit-at-Risk (PaR) is a risk management quantity most often used for electricity portfolios that contain some mixture of generation assets, trading contracts and end-user consumption. It is used to provide a measure of the downside risk to profi ...
(PaR) or
margin at riskThe Margin-at-Risk (short: MaR) is a quantity used to manage short-term liquidity risks due to variation of margin requirements, i.e. it is a financial risk occurring when commodity market, trading commodities. Similar to the Value at risk, Value-at- ...
. The
Basel II Basel II is the second of the Basel Accords, (now extended and partially superseded by Basel III), which are recommendations on banking laws and regulations issued by the Basel Committee on Banking Supervision. The Basel II Accord was published in ...
framework breaks risks into
market risk Market risk is the risk In simple terms, risk is the possibility of something bad happening. Risk involves uncertainty Uncertainty refers to Epistemology, epistemic situations involving imperfect or unknown information. It applies to predic ...
(price risk),
credit risk A credit risk is risk of default Default may refer to: Law * Default (law), the failure to do something required by law ** Default (finance) In finance Finance is the study of financial institutions, financial markets and how they ope ...
and operational risk and also specifies methods for calculating
capital requirement A capital requirement (also known as regulatory capital or capital adequacy) is the amount of capital a bank or other financial institution has to have as required by its financial regulator. This is usually expressed as a capital adequacy ratio o ...
s for each of these components.


Information Technology

In Information Technology, risk management includes "Incident Handling", an action plan for dealing with intrusions, cyber-theft, denial of service, fire, floods, and other security-related events. According to the
SANS Institute The SANS Institute (officially the Escal Institute of Advanced Technologies) is a private U.S. for-profit company founded in 1989 that specializes in information security Information security, sometimes shortened to infosec, is the practice of p ...
, it is a six step process: Preparation, Identification, Containment, Eradication, Recovery, and Lessons Learned.


Contractual Risk Management

The concept of "contractual risk management" emphasises the use of risk management techniques in contract deployment, i.e. managing the risks which are accepted through entry into a contract. Norwegian academic Petri Keskitalo defines "contractual risk management" as "a practical, proactive and systematical contracting method that uses contract planning and governance to manage risks connected to business activities". In an article by Samuel Greengard published in 2010, two US legal cases are mentioned which emphasise the importance of having a strategy for dealing with risk:Greengard, S. (2010)
The Difference Is in the Details
Engineering Inc., September/October 2010, pages 13-15
*UDC v.
CH2M Hill CH2M, later CH2M Hill, was an engineering company that provided consulting, design, construction, and operations services for corporations and governments. The company was organized in Delaware Delaware ( ) is a U.S. state, state in the Mi ...
, which deals with the risk to a professional advisor who signs an
indemnification Indemnity is a contractual obligation of one party (indemnifier) to compensate the loss incurred to the other party (indemnity holder) due to the acts of the indemnitor or any other party. The duty to indemnify is usually, but not always, coextensi ...
provision including acceptance of a
duty to defendThe duty to defend is a Indemnity, contractual indemnitor or liability insurance, liability insurer's duty to defend the insured or indemnified party against claims. It is generally broader than the duty to indemnity, indemnify and may cover defense ...
, who may thereby pick up the legal costs of defending a client subject to a claim from a third party, *Witt v. La Gorce Country Club, which deals with the effectiveness of a limitation of liability clause, which may, in certain jurisdictions, be found to be ineffective. Greengard recommends using industry-standard contract language as much as possible to reduce risk as much as possible and rely on clauses which have been in use and subject to established court interpretation over a number of years.


Memory institutionA memory institution is an organization maintaining a repository of public knowledge, a generic term used about institutions such as libraries, archives, heritage (monuments & sites) institutions, aquaria and arboreta, and zoological and botanical ga ...
s (museums, libraries and archives)


Enterprise

In enterprise risk management, a risk is defined as a possible event or circumstance that can have negative influences on the enterprise in question. Its impact can be on the very existence, the resources (human and capital), the products and services, or the customers of the enterprise, as well as external impacts on society, markets, or the environment. In a financial institution, enterprise risk management is normally thought of as the combination of credit risk,
interest rate risk Interest rate risk is the risk In simple terms, risk is the possibility of something bad happening. Risk involves uncertainty Uncertainty refers to Epistemology, epistemic situations involving imperfect or unknown information. It applies to ...
or
asset liability management Asset and liability management (often abbreviated ALM) is the practice of managing financial risks that arise due to mismatches between the assets and liability (financial accounting), liabilities as part of an investment strategy in financial acco ...
, liquidity risk, market risk, and operational risk. In the more general case, every probable risk can have a pre-formulated plan to deal with its possible consequences (to ensure ''contingency'' if the risk becomes a ''liability''). From the information above and the average cost per employee over time, or cost accrual ratio, a project manager can estimate: * the cost associated with the risk if it arises, estimated by multiplying employee costs per unit time by the estimated time lost (''cost impact'', ''C'' where ''C = cost accrual ratio * S''). * the probable increase in time associated with a risk (''schedule variance due to risk'', ''Rs'' where Rs = P * S): ** Sorting on this value puts the highest risks to the schedule first. This is intended to cause the greatest risks to the project to be attempted first so that risk is minimized as quickly as possible. ** This is slightly misleading as ''schedule variances'' with a large P and small S and vice versa are not equivalent. (The risk of the
RMS ''Titanic''RMS may refer to: Places * Ramstein Air Base, in Germany (IATA code RMS) * ' (Republic of the South Moluccas), a self-proclaimed republic in the Maluku Islands, founded in 1950 Organizations Learned societies * Ramanujan Mathematical Society, a le ...

RMS ''Titanic''
sinking vs. the passengers' meals being served at slightly the wrong time). * the probable increase in cost associated with a risk (''cost variance due to risk'', ''Rc'' where Rc = P*C = P*CAR*S = P*S*CAR) ** sorting on this value puts the highest risks to the budget first. ** see concerns about ''schedule variance'' as this is a function of it, as illustrated in the equation above. Risk in a
project A project (or program) is any undertaking, carried out individually or collaboratively and possibly involving research or design, that is carefully plan A plan is typically any diagram or list of steps with details of timing and resources, us ...

project
or
process A process is a series or set of activities that interact to produce a result; it may occur once-only or be recurrent or periodic. Things called a process include: Business and management *Business process A business process, business method ...
can be due either to Special Cause Variation or Common Cause Variation and requires appropriate treatment. That is to re-iterate the concern about extremal cases not being equivalent in the list immediately above.


Enterprise Security

ESRM is a security program management approach that links security activities to an enterprise's mission and business goals through risk management methods. The security leader's role in ESRM is to manage risks of harm to enterprise assets in partnership with the business leaders whose assets are exposed to those risks. ESRM involves educating business leaders on the realistic impacts of identified risks, presenting potential strategies to mitigate those impacts, then enacting the option chosen by the business in line with accepted levels of business risk tolerance


Medical Devices

For
medical device A medical device is any device intended to be used for medical purposes. Significant potential for hazard A hazard is a potential source of harm. Substances, events, or circumstances can constitute hazards when their nature would allow them, e ...
s, risk management is a process for identifying, evaluating and mitigating risks associated with harm to people and damage to property or the environment. Risk management is an integral part of medical device design and development, production processes and evaluation of field experience, and is applicable to all types of medical devices. The evidence of its application is required by most regulatory bodies such as the
US FDA The United States The United States of America (USA), commonly known as the United States (U.S. or US), or America, is a country Contiguous United States, primarily located in North America. It consists of 50 U.S. state, states, a Wash ...
. The management of risks for medical devices is described by the International Organization for Standardization (ISO) in ISO 14971:2019, Medical Devices—The application of risk management to medical devices, a product safety standard. The standard provides a process framework and associated requirements for management responsibilities, risk analysis and evaluation, risk controls and lifecycle risk management. Guidance on the application of the standard is available via ISO/TR 24971:2020. The European version of the risk management standard was updated in 2009 and again in 2012 to refer to the Medical Devices Directive (MDD) and Active Implantable Medical Device Directive (AIMDD) revision in 2007, as well as the In Vitro Medical Device Directive (IVDD). The requirements of EN 14971:2012 are nearly identical to ISO 14971:2007. The differences include three "(informative)" Z Annexes that refer to the new MDD, AIMDD, and IVDD. These annexes indicate content deviations that include the requirement for risks to be reduced ''as far as possible'', and the requirement that risks be mitigated by design and not by labeling on the medical device (i.e., labeling can no longer be used to mitigate risk). Typical risk analysis and evaluation techniques adopted by the medical device industry include
hazard analysis A hazard analysis is used as the first step in a process used to assess risk In simple terms, risk is the possibility of something bad happening. Risk involves uncertainty Uncertainty refers to Epistemology, epistemic situations involving i ...
,
fault tree analysis Image:Fault tree.svg, A fault tree diagram Fault tree analysis (FTA) is a top-down, Deductive reasoning, deductive failure analysis in which an undesired state of a system is analyzed using Boolean logic to combine a series of lower-level events. ...
(FTA),
failure mode and effects analysis Failure mode and effects analysis (FMEA; often written with "failure modes" in plural) is the process of reviewing as many components, assemblies, and subsystems as possible to identify potential failure modes in a system and their causes and effe ...
(FMEA), hazard and operability study (
HAZOP A hazard and operability study (HAZOP) is a structured and systematic examination of a complex planned or existing process or operation in order to identify and evaluate problems that may represent risk In simple terms, risk is the possibility of ...
), and risk traceability analysis for ensuring risk controls are implemented and effective (i.e. tracking risks identified to product requirements, design specifications, verification and validation results etc.). FTA analysis requires diagramming software. FMEA analysis can be done using a
spreadsheet A spreadsheet is a computer application for organization, analysis, and storage of data in table (information), tabular form. Spreadsheets were developed as computerized analogs of paper accounting Worksheet#Accounting, worksheets. The program op ...

spreadsheet
program. There are also integrated medical device risk management solutions. Through
draft guidance
the FDA has introduced another method named "Safety Assurance Case" for medical device safety assurance analysis. The safety assurance case is structured argument reasoning about systems appropriate for scientists and engineers, supported by a body of evidence, that provides a compelling, comprehensible and valid case that a system is safe for a given application in a given environment. With the guidance, a safety assurance case is expected for safety critical devices (e.g. infusion devices) as part of the pre-market clearance submission, e.g. 510(k). In 2013, the FDA introduced another draft guidance expecting medical device manufacturers to submit cybersecurity risk analysis information.


Project Management

Project risk management must be considered at the different phases of acquisition. In the beginning of a project, the advancement of technical developments, or threats presented by a competitor's projects, may cause a risk or threat assessment and subsequent evaluation of alternatives (see
Analysis of Alternatives The Analysis of Alternatives (AoA) in the United States is a requirement of military acquisition policy, as controlled by the Office of Management and Budget (OMB) and the United States Department of Defense (DoD). It ensures that at least three fea ...
). Once a decision is made, and the project begun, more familiar project management applications can be used: * Planning how risk will be managed in the particular project. Plans should include risk management tasks, responsibilities, activities and budget. * Assigning a risk officer – a team member other than a project manager who is responsible for foreseeing potential project problems. Typical characteristic of risk officer is a healthy skepticism. * Maintaining live project risk database. Each risk should have the following attributes: opening date, title, short description, probability and importance. Optionally a risk may have an assigned person responsible for its resolution and a date by which the risk must be resolved. * Creating anonymous risk reporting channel. Each team member should have the possibility to report risks that he/she foresees in the project. * Preparing mitigation plans for risks that are chosen to be mitigated. The purpose of the mitigation plan is to describe how this particular risk will be handled – what, when, by whom and how will it be done to avoid it or minimize consequences if it becomes a liability. * Summarizing planned and faced risks, effectiveness of mitigation activities, and effort spent for the risk management.


Megaprojects (infrastructure)

Megaproject A megaproject is an extremely large-scale investment Investment is the dedication of an asset to attain an increase in value over a period of time. Investment requires a sacrifice of some present asset, such as time, money, or effort. In f ...
s (sometimes also called "major programs") are large-scale investment projects, typically costing more than $1 billion per project. Megaprojects include major bridges, tunnels, highways, railways, airports, seaports, power plants, dams, wastewater projects, coastal flood protection schemes, oil and natural gas extraction projects, public buildings, information technology systems, aerospace projects, and defense systems. Megaprojects have been shown to be particularly risky in terms of finance, safety, and social and environmental impacts. Risk management is therefore particularly pertinent for megaprojects and special methods and special education have been developed for such risk management.


Natural Disasters

It is important to assess risk in regard to natural disasters like
floods A flood is an overflow of water that submerges land that is usually dry. In the sense of "flowing water", the word may also be applied to the inflow of the tide Tides are the rise and fall of sea level Mean sea level (MSL) (often ...
,
earthquakes An earthquake (also known as a quake, tremor or temblor) is the shaking of the surface of the Earth resulting from a sudden release of energy in the Earth Earth is the third planet from the Sun and the only astronomical object known ...
, and so on. Outcomes of natural disaster risk assessment are valuable when considering future repair costs, business interruption losses and other downtime, effects on the environment, insurance costs, and the proposed costs of reducing the risk. The
Sendai Framework for Disaster Risk ReductionThe Sendai Framework for Disaster Risk Reduction (2015–2030) is an international document that was adopted by the United Nations member states between 14 and 18 March 2015 at the World Conference on Disaster Risk Reduction held in Sendai is the ...
is a 2015 international accord that has set goals and targets for
disaster risk reduction 300x300px, Disaster risk reduction progress score for some countries Disaster risk reduction (DRR) is a systematic approach to identifying, assessing and reducing the risks of disaster. It aims to reduce socio-economic Socioeconomics (also know ...
in response to natural disasters. There are regular
International Disaster and Risk Conference Organized and hosted by the Global Risk Forum The International Disaster and Risk Conference IDRC is a global gathering of experts for risk reduction, disaster management Emergency management is the organization and management of the resources ...
s in
Davos , neighboring_municipalities= Arosa , neighboring_municipalities= Alvaneu Alvaneu (''Romansh language, Romansh: Alvagni'') is a former municipalities of Switzerland, municipality in the district of Albula (district), Albula in the Cantons of S ...

Davos
to deal with integral risk management. Several tools can be used to assess risk and risk management of natural disasters and other climate events, including geospatial modeling, a key component of land change science. This modeling requires an understanding of geographic distributions of people as well as an ability to calculate the likelihood of a natural disaster occurring.


Wilderness

The management of risks to persons and property in
wilderness Wilderness or wildlands (usually in the plural), are natural environments on Earth that have not been significantly modified by human activity or any nonurbanized land not under extensive agricultural cultivation. The term has traditionally re ...

wilderness
and remote natural areas has developed with increases in outdoor recreation participation and decreased social tolerance for loss. Organizations providing commercial wilderness experiences can now align with national and international consensus standards for training and equipment such as
ANSI The American National Standards Institute (ANSI ) is a private non-profit organization A nonprofit organization (NPO), also known as a non-business entity, not-for-profit organization, or nonprofit institution, is a legal entity organiz ...
/NASBLA 101-2017 (boating),
UIAA The International Climbing and Mountaineering Federation, commonly known by its French language, French name Union Internationale des Associations d'Alpinisme (UIAA, lit. ''International Union of List of alpine clubs, Alpine Clubs''), was foun ...
152 (ice climbing tools), and European Norm 13089:2015 + A1:2015 (mountaineering equipment). The Association for Experiential Education offers accreditation for wilderness adventure programs. The Wilderness Risk Management Conference provides access to best practices, and specialist organizations provide wilderness risk management consulting and training. In his book, ''Outdoor Leadership and Education'', climber, outdoor educator, and author , notes that outdoor recreation is inherently risky, and there is no way to completely eliminate risk. However, he explains how that can be a good thing for outdoor education programs. According to Schneider, optimal adventure is achieved when real risk is managed and perceived risk is maintained in order to keep actual danger low and a sense of adventure high. The text Outdoor Safety - Risk Management for Outdoor Leaders, published by the New Zealand Mountain Safety Council, provides a view of wilderness risk management from the New Zealand perspective, recognizing the value of national outdoor safety legislation and devoting considerable attention to the roles of judgment and decision-making processes in wilderness risk management. One popular models for risk assessment is the Risk Assessment and Safety Management (RASM) Model developed by Rick Curtis, author of The Backpacker's Field Manual. The formula for the RASM Model is: Risk = Probability of Accident × Severity of Consequences. The RASM Model weighs negative risk—the potential for loss, against positive risk—the potential for growth.


Information Technology

IT risk Information technology risk, IT risk, IT-related risk, or cyber risk is any risk In simple terms, risk is the possibility of something bad happening. Risk involves uncertainty Uncertainty refers to Epistemology, epistemic situations involving ...
is a risk related to information technology. This is a relatively new term due to an increasing awareness that
information security #REDIRECT Information security #REDIRECT Information security Information security, sometimes shortened to infosec, is the practice of protecting information by mitigating information risks. It is part of Risk management information systems, inform ...

information security
is simply one facet of a multitude of risks that are relevant to IT and the real world processes it supports. "Cybersecurity is tied closely to the advancement of technology. It lags only long enough for incentives like black markets to evolve and new exploits to be discovered. There is no end in sight for the advancement of technology, so we can expect the same from cybersecurity."
ISACA ISACA is an international professional association focused on IT (information technology) governance. On its IRS filings, it is known as the Information Systems Audit and Control Association, although ISACA now goes by its acronym only.
's ''
Risk IT Risk IT provides an end-to-end, comprehensive view of all risk In simple terms, risk is the possibility of something bad happening. Risk involves uncertainty Uncertainty refers to Epistemology, epistemic situations involving imperfect or unkn ...
'' framework ties IT risk to
enterprise risk management Enterprise risk management (ERM) in business Business is the activity of making one's living or making money by producing or buying and selling products (such as goods and services). Simply put, it is "any activity or enterprise entered into ...
. Duty of Care Risk Analysis (DoCRA) evaluates risks and their safeguards and considers the interests of all parties potentially affected by those risks.


Petroleum and Natural Gas

For the offshore oil and gas industry, operational risk management is regulated by the safety case regime in many countries. Hazard identification and risk assessment tools and techniques are described in the international standard ISO 17776:2000, and organisations such as the IADC ( International Association of Drilling Contractors) publish guidelines for Health, Safety and Environment (HSE) Case development which are based on the ISO standard. Further, diagrammatic representations of hazardous events are often expected by governmental regulators as part of risk management in safety case submissions; these are known as s (see Network theory in risk assessment). The technique is also used by organisations and regulators in mining, aviation, health, defence, industrial and finance.


Pharmaceutical Sector

The principles and tools for quality risk management are increasingly being applied to different aspects of pharmaceutical quality systems. These aspects include development, manufacturing, distribution, inspection, and submission/review processes throughout the lifecycle of drug substances, drug products, biological and biotechnological products (including the use of raw materials, solvents, excipients, packaging and labeling materials in drug products, biological and biotechnological products). Risk management is also applied to the assessment o
microbiological contamination
in relation to pharmaceutical products and cleanroom manufacturing environments.


Risk Communication


See also

*
Enterprise risk management Enterprise risk management (ERM) in business Business is the activity of making one's living or making money by producing or buying and selling products (such as goods and services). Simply put, it is "any activity or enterprise entered into ...
*
Financial risk managementFinancial risk management is the practice of protecting economic value In economics Economics () is the social science that studies how people interact with value; in particular, the Production (economics), production, distribution (eco ...
* Operational risk management * Supply-chain risk management *
Project risk management#REDIRECT Project risk managementRisk management activities are applied to project management Project management is the process of leading the work of a team to achieve goals and meet success criteria at a specified time. The primary challenge of ...
*
IT risk management IT risk management is the application of risk management Risk management is the identification, evaluation, and prioritization of risk In simple terms, risk is the possibility of something bad happening. Risk involves uncertainty Uncer ...
*
Risk assessment Broadly speaking, a risk assessment is the combined effort of: # identifying and analyzing potential (future) events that may negatively impact individuals, assets, and/or the environment (i.e. hazard analysis A hazard analysis is used as the ...

Risk assessment
*
Risk analysis Risk management is the identification, evaluation, and prioritization of risk In simple terms, risk is the possibility of something bad happening. Risk involves uncertainty Uncertainty refers to Epistemology, epistemic situations involving ...
*
Business continuity Business continuity may be defined as "the capability of an organisation to continue the delivery of products or services at pre-defined acceptable levels following a disruptive incident”, and business continuity planning (or business continuity ...
*
Disaster risk reduction #REDIRECT Disaster risk reduction 300x300px, Disaster risk reduction progress score for some countries Disaster risk reduction (DRR) is a systematic approach to identifying, assessing and reducing the risks of disaster. It aims to reduce socio-ec ...
* Catastrophe modeling for risk management *
Security management#REDIRECT Security management Security management is the identification of an organization's asset In financial accountancy, financial accounting, an asset is any resource owned or controlled by a business or an economic entity. It is anything ...
*
Stranded asset Stranded assets are "asset In financial accounting Financial accounting is the field of accounting Accounting or Accountancy is the measurement, processing, and communication of financial and non financial information about economic enti ...
*
Optimism bias Optimism bias (or the optimistic bias) is a cognitive bias A cognitive bias is a systematic pattern of deviation from norm Norm, the Norm or NORM may refer to: In academic disciplines * Norm (geology), an estimate of the idealised mineral con ...
* Pest risk analysis *
Risk appetite Risk appetite is the level of risk that an organization is prepared to accept in pursuit of its objectives, before action is deemed necessary to reduce the risk. It represents a balance between the potential benefits of innovation and the threats, t ...
* Roy's safety-first criterion *
Precautionary principle The precautionary principle (or precautionary approach) is a broad epistemological Epistemology (; ) is the branch of philosophy concerned with knowledge Knowledge is a familiarity or awareness, of someone or something, such as fac ...

Precautionary principle
* Representative heuristic *
Risk management tools Risk management tools allow the uncertainty to be addressed by identifying and generating metrics, parameterizing, prioritizing, and developing responses, and tracking risk. These activities may be difficult to track without tools and techniques, do ...
*
Reference class forecasting Reference class forecasting or comparison class forecasting is a method of predicting the future by looking at similar past situations and their outcomes. The theories behind reference class forecasting were developed by Daniel Kahneman and Amos Tv ...
* Social risk management * Environmental Risk Management Authority (NZ) * International Institute of Risk & Safety Management *
Loss-control consultantA loss control consultant (also LCC or loss control representative) is someone who possess a demonstrable knowledge and / or education in arts and science of safety engineering and risk management Risk management is the identification, evaluatio ...
* *


References


External links


DoD Risk, Issue, and Opportunity Management Guide for Defense Acquisition Programs
(2017)
DoD Risk Management Guide for Defense Acquisition Programs
(2014) * {{DEFAULTSORT:Risk Management Actuarial science Project management Risk analysis
Security :''For stocks and bonds see:'' :Securities (finance) and Security (finance) Safety Defense policy Society {{CatAutoTOC ...
Systems engineering Communication studies IEEE standards ISO/IEC standards