Which term is an organized approach to assessing and managing all the potential risks that a business or individual can face?

Which term is an organized approach to assessing and managing all the potential risks that a business or individual can face?

• A. Quality
• B. Intranet
• C. Risk management
• D. Factoring

Answer: (C)

Risk management is the organized process of identifying what could go wrong, judging how likely it is and how big the impact could be, and then putting in place actions to prevent or lessen those risks. It’s ongoing and covers all areas a business or person faces, so you can plan, implement controls, and monitor results to protect objectives and resources. For example, a company might assess financial, operational, legal, and reputational risks, decide which ones to address first based on probability and severity, and put in place strategies like safety procedures, insurance, or contingency plans. Quality is about how good a product or service is, not about handling risks. An intranet is an internal network for a organization’s staff, not a risk process. Factoring is a financial arrangement to convert receivables into cash, unrelated to systematically managing risks.

Risk management is the organized process of identifying what could go wrong, judging how likely it is and how big the impact could be, and then putting in place actions to prevent or lessen those risks. It’s ongoing and covers all areas a business or person faces, so you can plan, implement controls, and monitor results to protect objectives and resources. For example, a company might assess financial, operational, legal, and reputational risks, decide which ones to address first based on probability and severity, and put in place strategies like safety procedures, insurance, or contingency plans.

Quality is about how good a product or service is, not about handling risks. An intranet is an internal network for a organization’s staff, not a risk process. Factoring is a financial arrangement to convert receivables into cash, unrelated to systematically managing risks.