BU353 Chapter Notes - Chapter 3: Risk Assessment, Risk Measure
Document Summary
Iso 31000 is emerging as the international standard for risk management. It was designed to help all organizations, whether private, public, or not-for-profit, better manage risk. It explicitly recognizes that all activities of an organization involve risk, both positive and negative. Iso 31000 risk management process: communication and consultation, establishing the context, risk assessment (including risk identification, risk analysis, and risk evaluation, risk treatment, monitoring and review, process begins with communication and consultation with both internal and external shareholders. External factors that could impact risk include regulation, economic forces, climate and natural disasters. Internal factors include corporate culture, expertise, resources and financial strength. The measurement of risk is expressed as risk criteria. For example, a commonly used risk measure for financial risk is value at risk which is a measure of the risk of loss on a specific portfolio of financial assets.
