Introduction to Risk Management
Learn about Risk Management, and the different categories and essential terminology, tools and approaches.Publisher: Saylor Academy
CertificationView course modules
In recent times there has been a move towards holistic risk management, in response to natural disasters and events such as the September 11th, 2001 attacks. Today, management of personal and commercial risks involves coordination of regulatory actions across countries and governmental involvement at the enterprise level. Providing a single unambiguous definition of “risk” can be difficult. Most risk professionals define "risk", in terms of an expected deviation of an occurrence from what is expected. Many people use the word "risk", as a noun, to describe an enterprise, property, person or activity, that will be exposed to losses.
In this course you will learn the difference between 'diversifiable' and 'nondiversifiable' risks and terminology used by risk professionals, to refer to physical and intangible risks. The global financial crisis in 2008, underscores the urgency for studying risk management tools. Measuring the frequency and severity of losses, is essential to creating a "risk map". You will learn how to identify organizational risks using a risk map, where risks are measured using a frequency, severity and value grid. You will compare a risk map created for risk identification with one representing the current risk handling of an organization.
Risk is part of our daily lives and businesses. Learning how to manage risk and having the right insurance measures in place will make it easier for you when things go wrong. This Introduction to Risk Management course will introduce you to the subject of Risk Management where you will learn the essential terminology and categories of risk, as well as important risk management approaches and tools, so make sure to check it out and start learning how to control, prevent, and reduce losses that can result from risk.Start Course Now
Module 1: Exploring Risk
Exploring Risk - Learning Outcomes
Introduction to Risk: 2008 Financial Crisis
Risk and Uncertainty
Risk and Behavior
Diversifiable and Nondiversifiable Risks
Tangible and Intangible Risks
Exploring Risk - Lesson Summary
Module 2: Risk Management Processes
Risk Management Processes - Learning Outcomes
Risk Management Tools
Risk Management Tasks
Risk Map Analysis
Risk Management Systems
Risk Management Matrix
Evaluating Risk Management
Risk Management Processes - Lesson Summary
After completing this course you will be able to:
- Define Risk Management and discuss examples.
- Describe different types of risk exposure.
- Summarize perils and hazards associated with managing risk.
- Discuss the importance of risk management methodology, to businesses and individuals.
- Identify common organizational risks and create risk maps using a severity and frequency grid, to communicate the importance of each risk.
- Compute the frequency and severity of losses.
- Forecast risk management measures and conduct a cost-benefit analysis for loss control.
- Explain risk transfer, avoidance and retention.
- Describe solutions suggested by a risk management matrix.
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