Management of risk

According to ISO 31000 the definition of "risk" is "the effect of uncertainty on objectives". Looking into that definition it is noted that the word "risk" does refer to positive possibilities as well as negative ones. This definition was revised under the ISO 31000:2009 before that, the definition of the word "risk" was "chance or probability of loss".

Management of risk involves identification, assessment, and prioritization of risks. Coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities.

The term Risk management is really broad and can be used by individuals, families, firms, nations and so on. In this article risk management in general will be outlined with a special focus on risk management activities as applied to project management. That is one aspect inside of risk management called Project risk management

Introduction

According to ISO Guide 73:2009 risk management is intended to be used by those engaged in managing risks, those who are involved in activities of ISO and IEC, and developers of national or sector-specific standards, guides, procedures and codes of practice relating to the management of risk.