Risk Management

Risk management is the process of identifying risks and addressing them in a satisfactory manner. To be at risk is to be exposed to the possibility of an event that can inflict harm or loss. Risk exposure is a constant presence in all aspects of life, and its management is an urgent, ceaseless, [Page 2969]and ubiquitous task. Risk also creates the opportunity for return, and so the proficient management of risk can be very rewarding. In business, risk management is relevant mainly to enterprise risk and investment risk. Corporations manage risk to remain in business and, ideally, to be maximally profitable, and investment managers seek to obtain the maximum return on a group of securities at the desired level of risk. The management of both ...