risk-management

Vocabulary Word

Examples in Different Contexts

In corporate governance, 'risk management' is the process by which companies identify, assess, and prioritize risks to minimize, monitor, and control the probability or impact of unfortunate events. A board member might state, 'Effective risk management is essential for protecting shareholder value and ensuring long-term viability.'

Practice Scenarios

Tech

Scenario:

We've made great progress with the software development. However, we need to stay vigilant for any unforeseen issues.

Response:

That's correct. Our risk-management measures have been effective in identifying potential software bugs before they cause real harm.

Business

Scenario:

Considering the market's volatility, we need a solid strategy to reduce potential losses.

Response:

Indeed, our risk-management strategy needs to be robust to protect our investments amidst these market fluctuations.