Enterprise risk management (ERM) is a holistic approach to identifying, defining, quantifying, and...
risk management RM
Risk management is the practice of identifying and analyzing loss exposures and taking steps to minimize the financial impact of the risks they impose.
Additional Information
Traditional risk management, sometimes called "insurance risk management," has focused on "pure risks" (i.e., possible loss by fortuitous or accidental means) but not business risks (i.e., those that may present the possibility of loss or gain). Financial institutions also employ a different type of risk management, which focuses on the effects of financial risks on the organization. For example, interest rate risk is a bank's most important financial risk, and various hedging tools and techniques such as derivatives are used to manage banks' exposure to interest rate volatility.
Related Terms
Event risk is the possibility of loss associated with fortuitous occurrences such as fires,...
Operational risk is the risk of human, process, system, or technological failure as well as risks...
The risk management process is the process of making and implementing decisions that will minimize...
A risk manager is the individual responsible for managing an organization's risks and minimizing...
