Risk Management

Heinz‐Peter Berg – RISK MANAGEMENT: PROCEDURES, METHODS AND EXPERIENCES

RT&A # 2(17) (Vol.1) 2010, June

RISK MANAGEMENT: PROCEDURES, METHODS AND EXPERIENCES
Heinz-Peter Berg • Bundesamt für Strahlenschutz, Salzgitter, Germany e-mail: [e-mail]

ABSTRACT
Risk management is an activity which integrates recognition of risk, risk assessment, developing strategies to manage it, and mitigation of risk using managerial resources. Some traditional risk managements are focused on risks stemming from physical or legal causes (e.g. natural disasters or fires, accidents, death). Financial risk management, on the other hand, focuses on risks that can be managed using traded financial instruments. Objective of risk management is to reduce different risks related to a pre-selected domain to an acceptable. It may refer to numerous types of threats caused by environment, technology, humans, organizations and politics. The paper describes the different steps in the risk management process which methods are used in the different steps, and provides some examples for risk and safety management.

1 1.1

INTRODUCTION Risk

Risk is unavoidable and present in every human situation. It is present in daily lives, public and private sector organizations. Depending on the context (insurance, stakeholder, technical causes), there are many accepted definitions of risk in use. The common concept in all definitions is uncertainty of outcomes. Where they differ is in how they characterize outcomes. Some describe risk as having only adverse consequences, while others are neutral. One description of risk is the following: risk refers to the uncertainty that surrounds future events and outcomes. It is the expression of the likelihood and impact of an event with the potential to influence the achievement of an organization 's objectives. The phrase "the expression of the likelihood and impact of an event" implies that, as a minimum, some form of quantitative or

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