Glossary definition: Risk Management System And Process

Risk Management: System & Process for Mitigating Risk

A Risk Management System and Process is a system of structured procedures and processes used to identify, assess, monitor, manage, and mitigate risks associated with any activity, event, or project. This system is designed to help organizations identify, analyze, and respond to potential risks and threats, both internal and external. It is also used to help organizations create an effective strategy to reduce the likelihood of risks occurring and to minimize any potential damage if they do occur. Risk Management Systems and Processes involve assessing the probability of risks occurring, the severity of the consequences if they do occur, and the likelihood of success in mitigating the risks. It also involves creating policies and procedures to address the risks, as well as implementing systems to monitor and control risks. Risk Management Systems and Processes are designed to help organizations proactively identify, assess, and manage potential risks, as well as develop strategies to minimize potential losses.