What is risk management ?

Risk management is the science and art of understanding

the nature of risks and managing portfolio exposures to
provide expected return consistent with the risks taken.The
goals of risk management is to minimize uncompensated
and inappropriate risks. The process of risk management
includes
(1) identifying
(2) measuring and
(3) managing risk.

A systemstic process for identifying and measuring risks is

necessary for effective risk control. Once potential risks
have been identified they can accepted, transferred,
eliminated,or controlled.
How do we manage risk?
Identify Risk
Qualitative Risk Analysis
Quantitative Risk Analysis
Plan Risk Response
Plan Risk Response
Monitor and Control Risk
What are the Benefits?