Welcome to the world of risk management, or what is sometimes now called enterprise risk management or ERM.
For anyone looking for a reference to the ideas used in the past or recently designated risk analyst, you will see elements of business risk in some of the terms below. You may have been part of
- Contingency planning
- due diligence,
- acquisition review,
- Merger and acquisition review,
- The operative assessment
- A strategic facilitated top management meeting in this approach, or
Using a common source for the definition of business Dictionary, think of these ideas
Buy planning coordinates the activities of the personnel involved in the acquisition of property or the deposit to ensure timely and cost effective purchases .
Contingency planning is action to ensure proper and immediate follow-up steps will be taken by the management and staff for emergencies. Its main objective is to ensure:
(1) containment of damage or injury, or loss of, employees and assets, and
(2) the continuity of the main activities of the organization.
Due diligence is a measure of prudence, responsibility and diligence expected from, and normally exercised by, a reasonable and prudent person in the circumstances.
Operational assessment is the evaluation of the efficiency and cost-effectiveness of the system through a test aimed at:
(1) analysis of shortcomings, gaps, areas of risk,
(2) Measurement of adequate production and
(3) assessment of reliability in operation.
Risk management includes policies, procedures and practices involved in the identification, analysis, evaluation, monitoring and avoiding, minimizing or elimination of unacceptable risk. Businesses can use risk assumption, risk getting, risk retention, risk transfer, or other technology (or combination of methods) in the proper management of future events.
Often new expert operation has to get familiar with the buzzwords and industry jargon as one of its first steps. If you are a new business risk management expert, or risk management expert, you will see that these terms regularly.