Dictionary of Accounting Terms: risk management
risk management
- the analysis of and planning for potential risks and their subsequent losses. The objective of risk management is to try to minimize the financial consequence of random losses.
- the business activity that assesses the risks a company is faced with and a plan for the potential coverage or payment of those risks.
Dictionary of Banking Terms: risk management
risk management
- procedures to manage a bank's exposure to various types of risks associated with banking. This is done through a combination of internal policies, contractual arrangements with insurance companies for banker's blanket bond coverage, Directors & Officers Insurance, and self-insurance to reduce the costs from accidental loss.
- corporate service sold by commercial banks. Risk management is a set of services, rather than a specific product, aimed at controlling financing risk, including credit risk, and interest rate risk, through hedging devices, financial futures, and interest rate caps. The aim is to control corporate funding costs, budget interest rate expense, and limit exposure to interest rate fluctuations.
Dictionary of Business Terms: risk management
risk management
procedure to minimize the adverse effect of a possible financial loss by: (1) identifying potential sources of loss; (2) measuring the financial consequences of a loss occurring; and (3) using controls to minimize actual losses or their financial consequences.
Dictionary of Insurance Terms: risk management
risk management
procedure to minimize the adverse effect of a possible financial loss by (1) identifying potential sources of loss; (2) measuring the financial consequences of a loss occurring; and (3) using controls to minimize actual losses or their financial consequences.
