Published by – Goutam Kumar Jena
on behalf of GNEXT MS OFFICE
Category - Commerce & industry & Subcategory - Risk
Summary - Risk Management, commercial risk
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Details ( Page:- Risk )
What is Risk ?
Risk is a probability or, threat of damage, injury, liability, loss, or any other negative occurrence that is caused by external or internal vulnerabilities, and that may be avoided through preemptive action.
Risk tolerance - Capacity of an individual or an organization to accept or absorb risk. This has to be estimated or calculated during project planning phase.
Commercial Risk, defined as the risk by a company by offering credit with no collateral, is a common term in the business world. Any time a company offers credit, be it trade credit, credit terms like 2/10 net 30, or other, they are essentially offering financing with no collateral. In easier terms, let’s say considering payment without surety on income.
[justify]Project Risk is an uncertain event or condition that, if it occurs, has a positive or negative effect on a project objective. A risk has a cause and if it occurs a consequence. In order to maximize the probability and consequences of positive events and minimize the probability and consequences of adverse events to project objectives, risk management processes must be established.[/justify]
What is Risk management?
The identification, analysis, assessment, control, and avoidance, minimization, or elimination of unacceptable risks. An organization may use risk assumption, risk avoidance, risk retention, risk transfer, or any other strategy (or combination of strategies) in proper management of future events combined to be known as Risk Management.
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