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Glossary definition: Risk Management Process

Risk Management: A Systematic Approach to Mitigating Risk

Risk Management Process is a systematic approach to identifying, analyzing, and responding to risks associated with an organization's operations, projects, and investments. It involves assessing the likelihood and impact of potential risks, then developing strategies to manage those risks. Risk management is an ongoing process that seeks to minimize the impact of risks on an organization's objectives, while also maximizing the potential benefit of taking on certain risks. It involves identifying, evaluating, and responding to potential risks, as well as monitoring and reviewing the effectiveness of the risk management strategies. The process of risk management also involves communicating and consulting with stakeholders to ensure that risks are being managed effectively.