Risk management is the identification, assessment, and prioritization of risks, followed by coordinated and economical application of resources to minimize, monitor and control the impact of unfortunate events. Risks can come from uncertainty in financial markets, legal liabilities, credit risks, accidents, natural causes, and disasters.
Strategies to manage risk include transferring the risk to another party, avoiding the risk, reducing the risk, and accepting all of the consequences of a particular risk.
Method for Risk Management:
- Identify, characterize, and assess threats.
- Asses the vulnerability of critical assets to specific threats.
- Determine the risk.
- Identify ways to reduce the risk.
- Prioritize risks reduction measures based on strategy.
Potential Risk Management Strategies:
Once risks have been identified and assessed, techniques to manage the risk fall into one or more of the following categories:
At Front Range Insurance Group, we go beyond just providing insurance by working with risk management and safety consultants that can identify all of your exposures and help you decide how to best handle them. Risk management is critical to success of any business.