Risk management is the practice of identifying and analyzing loss exposures and taking steps to...
risk manager
A risk manager is the individual responsible for managing an organization's risks and minimizing the adverse impact of losses on the achievement of the organization's objectives.
Additional Information
(1) Traditionally, risk managers have focused on event risks, but some organizations have broadened the role to include other types of risk (e.g., operational risks). The risk manager is charged with identifying risks, evaluating risks, selecting the best techniques for treating identified risks, implementing the chosen risk management techniques, and regularly evaluating and monitoring the program. This person is also involved in the managerial processes of planning, organizing, leading, and controlling those activities in a business that deals with various types of risk. (2) Another type of risk manager manages the effects of financial risks on the organization. This individual is usually a treasury department employee who must maintain certain critical financial metrics within acceptable parameters. For example, interest rate risk is a bank's most important financial risk. Using various hedging tools and techniques such as derivatives, the risk manager makes sure that the bank's exposure to interest rate volatility is satisfactorily managed.
Summary
Related Terms
The risk management process is the process of making and implementing decisions that will minimize...
