Risk Management Glossary
Going Bare
An uninsured business without any type of insurance or risk plan for an exposure that is insurable.
Risk Probability
The likelihood of a specific event or outcome to occur.
Risk
The chance of an event occuring that will have an impact on business objectives.
Risk Acceptance
A decision made to accept the consequences of a particular risk event.
Risk Analysis
A system that determines how often specified risk events can occur and their magnitude.
Risk Assessment
The process of risk analysis and risk evaluation.
Risk Avoidance
A decision made not to accept the consequences of a particular risk event.
Risk Control
The implementation of policies, procedures and changes to eliminate or minimize risk.
Risk Valuation
The process used to determine risk by comparing the risk against predetermined target levels and other risk criteria.
Risk Retention
Retaining the responsibility of financial and other loss within a business.
Risk Transfer
Shifting the responsibility of potential loss to another party through law, contract or insurance.
Stakeholder
Persons in a business who may affect or be affected by a risk.
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