Question

What is risk management? Discuss the two major ways in which exposure can be managed or reduced

Answer 1

Risk management refers to the practice of identifying potential risks in advance, analyzing them and taking precautionary steps to reduce/curb the risk.

Two major ways in which exposure can be managed or reduced:

• management of Internal Risk (human factors, technological factors, and physical factors)
• management of External Risk (economic factors, natural factors, and political factors)