Risk management involves four key steps: 1) recognizing risks, 2) assessing risks, 3) developing strategies to manage risks, and 4) mitigating risks using resources. There are various risk management strategies like transferring risk, avoiding risk, reducing the negative impacts of risk, or accepting the consequences. The objective of risk management is to reduce risks in a selected domain to a level acceptable to society. This may include threats from the environment, technology, humans, organizations, or politics.

2. What is Risk Management?
Human Activity which integrates:
1. Recognition of Risks
2.Risk Assessment
3. Developing strategies to manage it
4.Mitigation of risk using managerial resources.

3. Strategies
Transfering the risk to another party.
Avoiding the risk.
Reducing the negative effect of the risk.
Accepting some or all of the consequences of a
particular risk.

4. Traditional Risk Managements
Stemming from physical or legal causes such as:
1. Natural disasters
2.Fires
3. Accidents
4.Death
5.Lawsuits

5. Ideal Risk Management
A priorization process.
Risks with the greatest loss and the greatest
profitability are handled first.
Risks with lower probability of occurence and lower
loss are handled in descending order.

6. Objective of risk Management
Reduce different risks related to a preselected domain
to the level accepted by society.
It may refer to numerous types of threaths caused by
the environment, technology, humans, organizations
and politics.

7. Intangible and Relationship Risks
Risk that has a 100% probability of occuring but is
ignored by the organization due to a lack of
identification ability.
Appears when ineffective collaboration occurs.

8. Steps in the Risk Management
Process
1. Identification of risk in a selected domain of
interest.
2. Planning the remainder of the process.
3. Mapping out.
4. Defining a framework for the activity and an agenda
for identification
5. Developing an analysis of risk involved in the
process
6. Mitigation of risks using different resources.

9. Exercise
Risk avoidance
Risk Reduction
Risk Transfer
Risk Mitigation plan
Implementation

10. Exercise
Risk avoidance
Risk Reduction
Risk Transfer
Risk Mitigation plan
Implementation