INTRODUCTION :

Risk management is an essential aspect of organizational governance and decision-making,

encompassing the systematic identification, assessment, and mitigation of potential threats and
uncertainties that could impact the achievement of objectives. In today's dynamic and complex
business environment, organizations face a wide array of risks ranging from financial
uncertainties and regulatory compliance issues to operational disruptions and cybersecurity
threats.

The introduction of risk management involves establishing a structured framework and

processes to proactively identify, evaluate, and address these risks in a systematic manner. By
adopting a risk management approach, organizations can enhance their ability to anticipate and
respond to challenges effectively, safeguarding their reputation, assets, and overall viability.

Effective risk management requires clear communication, strong leadership commitment, and
integration into all levels of an organization's operations and decision-making processes. It
involves not only minimizing potential losses but also identifying opportunities for innovation
and growth. Overall, risk management serves as a critical tool for ensuring resilience,
sustainability, and long-term success in today's ever-evolving business landscape.

DEFİNİTİON :

Risk management is the process of identifying, assessing, prioritizing, and mitigating risks that
could potentially affect the achievement of an organization's objectives. It involves systematically
analyzing potential threats and opportunities, evaluating their likelihood and impact, and
implementing strategies to minimize, transfer, or accept risks within acceptable levels.

Key components of risk management include:

1. Risk Identification: Identifying potential risks that could impact the organization's objectives,
including financial, operational, strategic, compliance, and reputational risks.

2. Risk Assessment: Evaluating the likelihood and potential impact of identified risks to prioritize
them based on their significance to the organization.

3. Risk Mitigation: Developing and implementing strategies to manage and reduce the impact or
likelihood of identified risks, such as risk avoidance, risk reduction, risk transfer, or risk
acceptance.

4. Risk Monitoring and Review: Continuously monitoring and reviewing the effectiveness of risk
management strategies and adjusting them as necessary in response to changes in the internal
and external environment.

Effective risk management helps organizations anticipate and proactively address potential
challenges, minimize losses, capitalize on opportunities, and enhance decision-making
processes. It also promotes resilience, sustainability, and long-term success by enabling
organizations to navigate uncertainties and adapt to changing circumstances.