Risk Management : An Overview

All activities involve risks from a wide variety of sources (management errors, financial uncertainty, legal liabilities, project failures, human errors, accidents, natural disasters, etc.). Risk management is the process of identifying, assessing and controlling threats to an organisation. Risk management, also considered as uncertainty management, allows organisations to attempt to prepare for the unexpected by minimising risks and extra costs before they happen. ISO 31000 recommends that risk management be part of the organisation''s structure, processes, objectives, strategy and activities. This standard places a greater focus on creating value as the key driver of risk management and features other related principles such as continual improvement, the inclusion of stakeholders, being customized to the organisation and consideration of human and cultural factors. It is a model that regularly exchanges feedback with its external environment in order to fit a wider range of needs and contexts. This book gathers contributions of several authors worldwide which cover several aspects related to risk management, including the application of risk management in specific sectors.