Risk Management (Public Administration)

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  • The concept of identifying, analyzing, and taking steps to either mitigate or hedge the uncertainty involved in investment decisions. It is a relatively recent evolution of the term insurance management. Risk management is a concept employed by most companies to reduce or eliminate exposures to loss as they relate to a broad scope of activities and responsibilities that range from basic risks, such as fire and employee injuries, to financial risks, such as interest rates and derivatives. The concept refers to multiple threats caused by the environment, humans, organizations, technology, and politics.

    Risk management is ideally conducted using a prioritization process, and typically five or six sequential steps are followed, depending on the nature of the organization and the magnitude of the decision at hand. Risk ...

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