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Chapter 10
Risk management
Risk management is therefore the process of reducing the possibility of
adverse consequences either by reducing the likelihood of an event or
its impact, or taking advantage of the upside risk.
Management are responsible for establishing a risk management
system in an organisation.
2.1 Risk management process
Process of risk
management
Risk identification List of potential risks
Risk assessment Prioritised risk list
Risk planning Risk avoidance and
contingency plans
Risk monitoring Risk audit
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