ln our personal and professional lives we are aware of risk and we take measures to limit our exposure-home and car insurance, avoidance of hazardous situations and contingency clauses in contracts are some examples. The goal of business risk management is to detail kinds of risks exist in your specific business and figure out how to prevent them entirely or minimize their impact on the business as a whole. To do this, most risk managers take a five step approach. First, identify the risks involved in all aspects of the business. Second, review the probability of the negative events occurring. Third, come up with a plan, a way to decrease the risk. Fourth, put the plan into action. Last, monitor the situation to see if the plan is effective or if it needs to be altered. When many people think of risk management, they think of events that need to be insured against, things like fires, floods and accidents in the workplace. These kinds of events are important in business risk management, but they are not the only kinds of risks that need to be considered when managing risk. Risk management includes risks that are a part of the industry the business is in and the way in which it does business. This encyclopaedia will be immensely useful particularly to university and college teachers, chartered accountants and company secretaries.
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