Definitions of Risk Management

Question 1

What is the IRM definition of risk management?

Answer 1

Processes which aim to help organisations understand, evaluate and take action on all their risks with a view to increasing the probability of success and reducing the likelihood of failure. Effective risk management helps organisations to identify, understand and manage risks, thereby maximising the likelihood of achieving their objectives. It is a core management discipline.

Question 2

What is the Hopkin definition of risk management?

Answer 2

Set of activities within an organisation undertaken to deliver the most favourable outcome and reduce the volatility and variability of that outcome.

Question 3

In general terms, what are the key terms included in a definition of risk management?

Answer 3

• Evaluating uncertainties and implications within options.
• Managing impacts once choices are made.
• Realistic in the assessments of risks.
• Consideration of effectiveness of the actions take to manage risks.

Question 4

What is the ISO Guide 73 definition of risk management?

Answer 4

Coordinated activities to direct and control an organisation with regard to risk.