Page 123 - Microsoft Word - 00 P1 IW Prelims.docx

Risk and the risk management process

Risk
Strategic capabilities

1.1 Definition

 Risk can be defined as an unrealised future loss arising from a
present action or inaction.

 Risks are the opportunities and dangers associated with uncertain
future events.

1.2 Positive and negative aspects of risk

 Risks can have an adverse ('downside exposure') or favourable
impact ('upside potential') on the organisation’s objectives

117