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Types of Risk Management

Avoidance
Avoidance

Risk avoidance is the elimination of hazards, activities and exposures that can negatively affect an organization's assets. Whereas risk management aims to control the damages and financial consequences of threatening events, risk avoidance seeks to avoid compromising events entirely.

Business Risk
Business Risk

risk analysis Use 'risk management' in a Sentence The company couldn't afford any more losses like the ones they had suffered in the previous quarter, so they sought out the best and brightest risk management experts to help them get back on track.

Compliance Risk
Compliance Risk

Compliance risk is also sometimes known as integrity risk. Many compliance regulations are enacted to ensure that organizations operate fairly and ethically. For that reason, compliance risk is also known as integrity risk. Compliance risk management is part of the collective governance, risk management and compliance discipline.

Credit Risk
Credit Risk

Credit risk management is the practice of mitigating losses by understanding the adequacy of a bank’s capital and loan loss reserves at any given time – a process that has long been a challenge for financial institutions.

source: sas.com
Diversification
Diversification

Diversification is the strategy of investing in a variety of securities in order to lower the risk involved with putting money into few investments. Diversification is the strategy of investing in a variety of securities in order to lower the risk involved with putting money into few investments.

Duplication
Duplication

A risk control technique that entails the utilization of backups or spares. For example, backup business data should be stored at a location separate from the main place of business. See also For example, backup business data should be stored at a location separate from the main place of business.

source: irmi.com
Financial Risk
Financial Risk

In financial risk management, it is important that the financial risk management department and the employees who work within it are not supervised by those responsible for making the decisions for the company involving financial risk.

Liquidity Risk
Liquidity Risk

Liquidity risk is the risk that stems from the lack of marketability of an investment that cannot be bought or sold quickly enough to prevent or minimize a loss. Liquidity risk is typically reflected in unusually wide bid-ask spreads or large price movements.

Loss Prevention
Loss Prevention

Loss Prevention and Risk Management Services. Partner will work with clients to identify, evaluate and manage any workplace hazards or organizational risks, and help to integrate effective risk management strategies into the client’s day-to-day operations.

Loss Reduction
Loss Reduction

Your risk management strategy should include a loss reduction plan. A Loss Reduction Plan Loss reduction is a proactive plan for reducing the potential impact of risks you’ve identified in a risk assessment but can’t fully eliminate.

Market Risk
Market Risk

BREAKING DOWN 'Market Risk' Market risk and specific risk make up the two major categories of investment risk. The most common types of market risks include interest rate risk, equity risk, currency risk and commodity risk.

Moral Hazard
Moral Hazard

Understand that moral hazard is the idea that a party protected in some way from risk will act differently than if they didn't have that protection. Learn how it applies in the business world.

Operational Risks
Operational Risks

Top 10 operational risks for 2017 Risk.net presents the top 10 operational risks of 2017, as chosen by risk practitioners Financial institutions face a range of operational challenges in 2017

source: risk.net
Other Risks
Other Risks

Again, ideal risk management minimizes spending (or manpower or other resources) and also minimizes the negative effects of risks. According to the definition to the risk, the risk is the possibility that an event will occur and adversely affect the achievement of an objective.

Reputational Risk
Reputational Risk

Defining Reputational Risk Posted on September 8, 2015 by Ward Ching The following article is part of a new blog series that will explore ideas, concepts, discussions, arguments and applications associated with the field of enterprise and strategic risk management.

Separation
Separation

For example, a company might need to store flammable material in a warehouse. Company management realizes that this is a necessary risk and decides to install state-of-the-art water sprinklers in the warehouse. If a fire occurs, the amount of loss will be minimized. Separation . Separation is a risk control technique that involves dispersing key assets.

source: pomsassoc.com
Strategic Risk
Strategic Risk

Strategic risk management is the process of identifying, quantifying, and mitigating any risk that affects or is inherent in a company’s business strategy, strategic objectives, and strategy execution. These risks may include:

source: workiva.com
Systemic Risk
Systemic Risk

In finance, systemic risk is the risk of collapse of an entire financial system or entire market, as opposed to risk associated with any one individual entity, group or component of a system, that can be contained therein without harming the entire system.