The term risk management is one that can be found with increasing frequency these days, both on television and in print. It’s not necessarily fodder for lively dinner conversation, but the timing of when you get to enjoy that next expensive steak could very well depend on how well versed you are on the topic of risk.
Put simply, risk management is the process of identification, analysis, and acceptance of uncertainty in business decisions. The primary objective of risk management is to provide the assurance that uncertainty does not interfere or prevent one from achieving their business goals. Risks can come from various sources including uncertainty in financial markets, threats from operational failures, legal liabilities, credit risk, accidents, natural causes and disasters, ever increasing competition, or other uncertain or unpredictable events.