Science may 7th 2020.

International Korean Christian Academy.

Teacher: Fátima Castillo.

Topic: risk management.

Objective: To know what is risk management.

Definition: In the world of finance, risk management refers to the practice of identifying potential risks in advance, analyzing them and taking precautionary steps to reduce/curb the risk. Description: When an entity makes an investment decision, it exposes itself to a number of financial risks.

Risk management is important in an organisation because without it, a firm cannot possibly define its objectives for the future. If a company defines objectives without taking the risks into consideration, chances are that they will lose direction once any of these risks hit home.

Once risks have been identified and assessed, all techniques to manage the risk fall into one or more of these four major categories:

• Avoidance (eliminate, withdraw from or not become involved)
• Reduction (optimize – mitigate)
• Sharing (transfer – outsource or insure)
• Retention (accept and budget)

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Assignment: Answer the following questions: 

1- what risk management mean?

2- what is the risk management and why is it important?

Nota: enviar la asignación el día martes 12 de mayo.