A risk is a quantified assessment of potential loss. Where risk cannot be totally avoided it must be managed. What does risk management entail?

CPA-Quantitative-Analysis-Section-4 BLOCK RELEASE

Risk management entails:
 Risk assessment. This involves identification of risks, quantification of risks and placing of risks in order of potential loss.
 Risk minimisation. This involves identification, costing, selection and implementation of counter- measures together with contingency planning.
Risk transfer (insurance). The risks that cannot be covered by security measures should be insured against.

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