Risk Management

Risk is the possibility of suffering loss. Risk deal outment is a turn of measuring or assessing risk and then developing strategies to manage or control those risks. Once risks have been assessed, a prioritization wait on is needed to determine the risks with the greatest loss and the greatest opportunity of occurring and/or recurring so those may be handled first, and risks with reduce luck of occurrence and lower loss argon handled next. This is set by the ?Law of rotund Numbers?. The Law of Large Numbers is simply that situation outcomes become to a greater extent foreseeable as the number of situations increase. To implement this prioritization may be a difficult course of action. Balancing between risks with high probability further lower loss against risks with high loss simply lower probability of occurring can often be complicated.

If risks are improperly assessed and prioritized, time can be wasted in dealing with risk of losses that are not seeming to occur. Risk Management also involves the difficult task of allocating resources properly. expenditure too much time assessing and managing unlikely risks can deviate resources.



Resources spent on risk management may rather have been spent on more profitable activities for the dominion, but without managing those risks, whatever the costs, the effects of those risks may ultimately cost the district more than the deterring actions to make those risks preventable or less likely.

The endangerment of not recognizing the importance of risk management can be mighty. It leaves the management without insight into what could go wrong; consequently more resources may be spent correcting problems that could have been avoided sooner. Catastrophic problems may occur without warning and without the possibility of recovering the situation in a favorable manner for the district. Decisions may be make without complete or adequate information of future consequences that...

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