Risk management
From ControllingWiki
IGC-DEFINITION (abbreviated)
Risk management
Risk in the entrepreneurial sense is a combination of the probability of a certain damage and the size of its financial consequences.
Risk management is concerned with the identification and valuation of risks, also defining the acceptable level of risk and their limitation with the help of hedging methods. Starting point is a risk policy, which is determined by top management and then realized on all management levels. To do so, it is necessary to know all the risks a company can encounter, to valuate them and to monitor their development. This task is often delegated to the controller.
A risk analysis should on the one hand describe the actual situation and on the other hand generate risk awareness.
from: IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)
