Risk management is a tool to map and evaluate risks in a structured and explicit way and – by dealing with them proactively – to manage them better. Risk management is based on making risk analyses.
Many entrepreneurs do not like to think about possible risks for their company. It is more attractive to think in terms of opportunities than in terms of threats.
Risk management has become an integral part of the policy of almost every company. It is a continuous process that identifies and values risks. It also determines how the probability of occurrence and the consequences of risks can be controlled.
Risk management is a method for identifying, quantifying, and practicing risks in a way. Every organization has organizational goals, but also procedures and invisible risks.