Chapter 6, Problem 1RQ

Explanation of Solution

Risk Management:

• Risk management refers to the mitigation of risk.
• It is defined as a process of discovering, analyzing, and assessing the risks to an organization’s operations.
• It also determines how these risks can be controlled and mitigated.
• The various sources of risk include uncertainty in financial markets, legal liabilities, threats from project failures, credit risk, etc.
• Several risk management standards was developed such as Project Management Institute, the National Institute of Standards and Technology, and ISO standards.