What Is Risk Management: The Complete Guide
Risk management is the systematic process of identifying, assessing, and controlling threats to an organization's capital, operations, and financial per...
Risk management is the systematic process of identifying, assessing, and controlling threats to an organization's capital, operations, and financial performance. It involves analyzing uncertainties and making informed decisions to protect against potential negative outcomes while enabling strategic growth. According to PwC's Global Risk Survey, organizations that embrace strategic risk management are five times more likely to deliver stakeholder confidence and better business outcomes. Risk management is not just about avoiding negative events—it's about making smart decisions that balance potential rewards with acceptable levels of uncertainty. This discipline has evolved from simple insurance practices to a comprehensive strategic function that influences every aspect of modern business operations. When properly implemented, it transforms uncertainty from a threat into a strategic advantage. Key fact: Organizations that implement robust risk management frameworks see 72% fewer major business disruptions, according to a 2023 study by the Risk Management Association.