What is risk management?

Answer:
Risk management is a process in which the probability of and loss from a risk is determined

and is followed by a strategy to minimize such risk.

All actions must have some type of risk management. Risk management generally requires analyzing the probability of a danger or other malicious event occurring and the loss such event will produce. Following the analysis and determination of risk, one should take proper measures to minimize the impact and effects of the risk.

Risk management is a necessity with everything we do. Ever since antiquity, risk management has been used. It was used in antiquity to determine the impact on both financial and environmental conditions. It is used today for similar reasons, though not necessarily in the same way.


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