1. Risk is all around us, over the last few years we have become more sensituationive and perhaps a little more accustomed to the types of risk we face. For example the recent economic recession highlighted the risk of interdependence of economies of the world; the 26/11 terrorist attacks in Mumbai reinforced the risk associated with the open waterways into the financial capital of our country.
2. There is a growing recognition that the risk is more complex and systematic than it has ever been. Despite this increased sensitivity and awareness of risk, we tend to be poor at assessing and managing those risks that we have direct control over. To a lesser or greater extent, we are taught from an early age to be careful and manage the low level risks we face quite carefully – such as crossing the road. So unless we are doing something that departs significantly from our daily routine, such as jumping out of an aircraft, we tend to take risk for granted.
3. Managing risk is an essential skill of all modern corporations and organisations. For those who manage risk well, the rewards can be great.
The aim of this paper is to understand the concept of risk management
What is Risk?
5. Ask ten people what they think risk is and you’ll get ten different answers. It doesn’t take a thorough search of risk literature to reveal the same problem. Definitions abound and they’re all worded in only slightly different ways. What’s important is to understand the concepts underlying risk.
6. Risk is the chance of injury or loss. Insight can be gained by listening to how peoperationalerationalle refer to risk in an everyday context and, particularly, in the organisationenvironment. What emerangees is that there are different ideas about risk, based on personal perceptions. Nonetheless, its underlying concepts remain - a chance that something’s going to happen and consequences if it does.Rate of occurrence multiplied by the impact of the