2. What is Risk Management?
Human Activity which integrates:
1. Recognition of Risks
2. Risk Assessment
3. Developing strategies to manage it
4. Mitigation of risk using managerial resources.

3. Strategies
Transfering the risk to another party.
Avoiding the risk.
Reducing the negative effect of the risk.
Accepting some or all of the consequences of a
particular risk.

4. Traditional Risk Managements
Stemming from physical or legal causes such as:
1. Natural disasters
2. Fires
3. Accidents
4. Death
5. Lawsuits

5. Ideal Risk Management
A priorization process.
Risks with the greatest loss and the greatest
profitability are handled first.
Risks with lower probability of occurence and lower
loss are handled in descending order.

6. Objective of risk Management
Reduce different risks related to a preselected domain
to the level accepted by society.
It may refer to numerous types of threaths caused by
the environment, technology, humans, organizations
and politics.

7. Intangible and Relationship Risks
Risk that has a 100% probability of occuring but is
ignored by the organization due to a lack of
identification ability.
Appears when ineffective collaboration occurs.

8. Steps in the Risk Management
Process
1. Identification of risk in a selected domain of
interest.
2. Planning the remainder of the process.
3. Mapping out.
4. Defining a framework for the activity and an agenda
for identification
5. Developing an analysis of risk involved in the
process
6. Mitigation of risks using different resources.

9. Exercise
Risk avoidance
Risk Reduction
Risk Transfer
Risk Mitigation plan
Implementation