Identification, assessment, and control of financial, legal, strategic, and security threats to the assets and profits of an organisation constitute the process of risk management. These dangers or risks could be caused by a wide range of things, such as monetary instability, legal liabilities, poor strategic management, mishaps, and natural disasters.
The basic methods for risk management include:
- Avoidance
- Retention
- Sharing
- Transferring
- Loss Prevention and Reduction.