Enterprise Risk Management

670 Words Jan 12th, 2018 3 Pages
Risk is based on future assumptions with different meanings for different people and a lack of agreement as to a definition of the word. Risk has basically become a perception in the individual mind based on what is important to the individual at the time and what may or may not happen in the future. Risk is based primarily on what people believe is risk. There are different types of risks. Risk perceived directly is dealt with using judgment, or intuition and experience, whether it is personal experience or the experience of others. Risks perceived through science are risks that science has helped to see that is invisible to the naked eye. Virtual risk is where science is inconclusive. These risks are culturally constructed, meaning people act on pre-established beliefs, convictions, prejudices, and superstitions. It is based on trust. Today, risks involve a lot of worries about being sued, as well as legal and regulatory environment risks. The most successful business is the most sued. Personal experience and the experience of others is a good measure to evaluate for risks and can be used as a risk model. Measuring risk from experience also tells what the damage can be if the situation arises. "Risk management is important to ensure that a methodical risk approach is used to identify assets to be protected, the threats and their impact on those assets, and the controls to be used…

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