Risk In Risk Management

Everything we do there is a risk involved, is the possibility of loss or injury. Risk is defined as an unwanted or uncertain event which we are never expected, something outside the control on the project. If it occurs, it will have the positive or negative impact on the project objectives, which may be seen as threats or opportunities. Risk-taking is scary because there is always some potential for loss; however all the company must face some degree of risk involved in order to get success. The potential return usually rises with an increase in risk, higher risk are associated with higher probability of returns, whereas lower risk are associated with lower probability of returns.

Risks are the main factor of uncertainty in any organization,

A peril is a cause of loss, something that we are not able to prevent, example fire or storm. A hazard is a condition that may arises from the peril, example scald because of fire. Other than that, risks can classify by dynamic risk, static risks, fundamental risks, particular risks, speculative risks, pure risks and so on.

Risk management is a systematic application of principles, an approach and a process to the tasks of identifying, assessing risks, then planning and implementing risk responses. Risk management plan tells an organization how to handle risk in the project to minimize the impact on the project risk and help companies act more confidently on future business decisions, it’s important to the

If an organization determines their objectives without taking the risks into consideration, they will once again be lost if any risk strikes. From determine the risk and how to prevent or avoid the risk, it consists of wide range solution, somehow, different field have different risk management.

In recent years, many organizations have added risk management departments to their team. The role of risk management departments is to identify risks, propose with strategies to guard against these risks, to implementation the strategies, and to motivating all employees of the company to cooperate in these strategies. This is also to ensure the possibility of failure to reduce. Larger organizations generally face greater risks, so their risk management strategies also require being more