What does risk and risk management mean to you?

Are there different definitions for risk? If so, what are they?

How would organizations benefit from having a formal risk management program (especially for IT and auditing)?

Describe how an organization handles risk. Do they use a formal risk management process or tool? Or is it more ad-hoc, where risks are handled differently on a case-by-case basis?

 

Here Is Answer :

RISK:  risk is something that we will feel that bad is going to happen(or) uncertainty about our own expectations.

Risk management :

The risk management is a process  which involves some actions that need to be taken to handle the risk.

This may include some steps like:

Step 1: 

Identify the Risk

The first step is to identify the risks that the business is exposed to in its operating environment. There are different types of risks - legal risks, environmental risks, market risks, regulatory risks.

Step 2: 

Analyze the risk

Once a risk has been identified it needs to be analyzed properly and carefully . The scope of the risk must be determined. It is also important to understand the link between the risk and different factors within the organization so that we can rectify the risk easily.

Step 3:

 Evaluate or Rank the Risk

Risks need to be ranked or prioritized. A risk that may cause some inconvenience is rated lowly, risks that can result in catastrophic loss are rated the highest.

Step 4: 

Treat the Risk

Every risk needs to be eliminated as much as possible. This can be done by connecting with the experts of the field to which the risk belongs to.

Step 5: 

Monitor and Review the risk

Not all risks can be eliminated - some risks are always present. Market risks and environmental risks are just two examples of risks that always need to be monitored.

2.

we may have different definitions for the risk but whatever the definition may be it must be managed carefully so that we can eliminate it as much as possible

For me the best definition of risk is,

Doing something without completely knowing about that which may leads to a bad thing.

3

1) Five benefit from having a formal risk management program are as follows-

• creation of a more risk focused culture for the organization

• standardized risk reporting

• improved focus and perspective on risk

• efficient use of resources

• effective coordination of regulatory and compliance matters