Risk Management

Risk Management is the process of identifying and measuring risk so that risk can be managed. There are a number of risk management approaches that include: transferring the risk to a third party, avoiding the risk altogether, or reducing the negative effect of the risk. Risk management can be applied to physical risk, legal risk, financial risk and so on. Physical risk management is designed to mitigate risks from natural disasters, floods, fires and the like. Legal risk management deals with accidents or lawsuits and financial risk management uses financial instruments such as futures trading, currency trading or other option trading to minimize the risk of doing business. Nearly all businesses, large or small, regardless of industry, perform some degree of risk management. There are professional services that specialize in helping businesses better identify, quantify, measure and assess risk so that it can be properly manageed.