Risk Management Certification

Risk management

plays a vital part of today’s corporate world, primarily related to finance, insurance, or banking based companies. Those in this line of work generally are tasked with applying their understanding of how a particular business works to analyzing potential risks pertaining to the current economic trends.

Risk management is the identification, assessment, and prioritization of risks followed by coordinated and economical application of resources in order to minimize, monitor and control the probability and/or impact a series of unfortunate events or to maximize the realization of opportunities. Risks can come from uncertainty in financial markets, project failures, legal liabilities, credit risk, accidents, natural causes and disasters as well as deliberate attacks from an adversary. Several risk management standards have been developed. Methods, definitions and goals vary widely according to whether the risk management method is in the context of a project. Management, security, engineering, industrial processes, financial portfolios, actuarial assessments, or public health and safety are all aspects where risk management can be used.

The strategies to manage risk include transferring the risk to another party, avoiding the risk, reducing the negative effect of the risk, and accepting some or all of the consequences of a particular risk.

Certain aspects of many of the risk management standards have come under criticism for having no measurable improvement on risk even though the confidence in estimates and decisions increase.