How New Risk Management Helps Leaders Master Uncertainty

CHAPTER 2

Managing Risk

Introduction

Risk is inherent in every activity performed within an organization.¹ We manage risk continuously, whether this is done consciously or done without realizing it. Risk management (see Figure 2.1) is an iterative process consisting of well-defined steps that support better decision making within the organization. Here are the basics of risk management:²

Figure 2.1 Meeting Strategic Objectives³

• Organizations of all types and sizes face external and internal factors and influences that make it uncertain whether they will achieve their objectives.
• Managing risk assists organizations in setting strategy, achieving ...