Page 17 - RISK Management IC 86

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n Political risks - recognizing threats in the environment &
keeping the company in balance,

n Social risks - Dealing with risk problems in a social
context,

n Project risks - ensuring on-time, on-budget performance,
n IT risks - the special vulnerabilities in I T operations,
n Military risks'
n Personal risks - handling various threats to the individual.

Definitions & basic components

The simplest definition of Risk Management can be:
l 'The identification, evaluation, control and prevention, and

transfer of risk'.
l Risk management is the identification, assessment, and

prioritization of risks followed by coordinated and economical
application of resources to minimize, monitor, and control the
probability and/or impact of unfortunate events or to maximize
the realization of opportunities.

For non-profit organizations the definition can read:
l “The identification, measurement and economic control of

risks that threaten the continued provision of essential goods
and services”.

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