What is risk management?

Risk management is the process of identifying, evaluating and managing potential risks that may affect the achievement of the organization’s goals. The goal is to minimize possible harmful effects and utilize opportunities in the best possible way.

Risk management consists of several steps, such as risk identification, risk assessment, risk management and monitoring. It is also important to communicate about risks and their management within the organization and with stakeholders.

Risk management is an important part of organizational management and decision-making. It helps the organization prepare for possible threats and utilize opportunities effectively. Well-planned risk management can improve an organization’s competitiveness and sustainability.

Sources: Riskienhandalla.fi, International Labor Organization