The systematic process of identifying, assessing, and mitigating potential risks to an organization, project, or individual, aimed at minimizing negative impacts and maximizing opportunities.

Risk Assessment:

The evaluation of potential risks, including their likelihood and impact, to determine the level of threat they pose to a particular objective or venture.

Risk Mitigation:

The implementation of strategies and actions to reduce the severity or likelihood of identified risks, enhancing the organization’s ability to navigate uncertainties.

Risk Appetite:

The level of risk an organization is willing to accept in pursuit of its objectives, balancing the desire for innovation and growth with the need for risk control.

Risk Tolerance:

The acceptable level of variation or deviation from expected outcomes that an organization or individual is willing to tolerate without significant concern.

Scenario Analysis:

The examination of different possible future scenarios and their potential impact on an organization, allowing for more informed decision-making and risk management.

Crisis Management:

The strategic planning and response to unexpected events or crises, aiming to minimize damage, ensure business continuity, and protect the reputation of an organization.

Enterprise Risk Management (ERM):

A holistic approach to managing risks across an entire organization, integrating risk considerations into decision-making processes at all levels.

Key Risk Indicators (KRIs):

Quantifiable metrics used to monitor and measure potential risks, providing early warning signs and allowing for proactive risk management.

Residual Risk:

The level of risk that remains after risk mitigation measures have been implemented, representing the ongoing exposure to uncertainties.

Risk Register:

A comprehensive document that identifies and records all potential risks, along with their characteristics, impact, likelihood, and planned mitigation strategies.

Risk Culture:

The shared values, attitudes, and behaviors within an organization regarding risk, influencing how individuals perceive and respond to uncertainties.

Risk Communication:

The process of sharing information about risks, their potential impacts, and the strategies for managing them with relevant stakeholders, both internal and external.

Black Swan Event:

An extremely rare and unpredictable event with severe consequences that has a significant impact on an organization, challenging conventional risk management practices.