What does risk management involve?

Risk management involves identifying, assessing, and prioritizing risks followed by coordinated efforts to minimize, monitor, and control the probability or impact of unforeseen events. It typically includes strategies such as risk avoidance, reduction, sharing, and acceptance. Effective risk management aims to safeguard an organization's assets, ensure compliance with regulations, and enhance decision-making processes. Ultimately, it seeks to create a balance between risk and opportunity to achieve organizational objectives.