September 2020
Beginner
184 pages
4h 46m
English
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CHAPTER 10
Risk Management
What Is Risk and Risk Management
If you ask most people what their definition of risk is, you are likely to get a response along the following lines: “Risk is the possibility that something bad happens.” That is the way that risk is portrayed in most media, and it is the way that many business professionals think. We believe, and theory backs us up on this, that a better definition of risk is “the possibility that bad or good things may happen.” This definition allows for a much more holistic view of risk, and, as we shall soon discuss, a much better way to think about and implement risk management.
Our definition of risk involves three components. The first component of risk is that risk is about the future. The second ...
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