BU353 Chapter Notes - Chapter 3: Risk Aversion, Casualty Actuarial Society, Risk Assessment
Document Summary
The core risk management process involves identification, analysis, evaluation, and treatment of risk. Committee of the sponsoring organizations of the treadway commission (coso) Designed to help all organizations better manage risk. Defines risk as the effect of uncertainty on objectives. Recognizes that all activities of an organization involve risk both positive and negative. Risk is often characterized by reference to potential events and consequences and is often quantified in terms of those consequences and the associated likelihood of occurrence. It outlines risk management frameworks, processes and activities that will help organizations to achieve their objectives. The process involves the following activities: communication and consultation, establishing the context, risk assessment, risk treatment, monitoring and review. Effective communication and consultation will help to ensure that both those responsible for implementing the risk management process and other stakeholders understand the basis on which decisions are being made.
