What is Risk Management?

A definition of Risk Management

“Risk management is the process of identifying, assessing, and prioritizing risks to minimize, monitor, and control the probability and impact of unfortunate events.”

Risk Management in Business Glossary - What is Risk Management?

Business Glossary > What is Risk Management?


Examples of Risk Management in a Sentence:

Effective risk management can prevent financial losses.

Companies invest in risk management to safeguard their assets.

Training in risk management is essential for project managers.

Why is Risk Management Important in Business?

Understanding risk management is vital for businesses to prevent potential losses and leverage opportunities. It enables strategic planning, ensures regulatory compliance, and protects company resources from unforeseen threats.

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Associated Terms

Here are some associated business terms and synonyms for “Risk Management”:

  • Risk Assessment
  • Risk Control
  • Risk Mitigation

JP Morgan Risk Management

JP Morgan uses advanced risk management strategies to oversee its vast financial operations. By leveraging data analytics and comprehensive risk assessment tools, the company effectively manages market and credit risks, ensuring financial stability.

Final Notes on Risk Management

Effective risk management involves understanding the types of risks, their potential impact, and the controls available to reduce their impact.

It is crucial for companies to continuously monitor and update their risk management strategies to accommodate changing environments.


This has been a definition of Risk Management meaning.

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