Risk management

1. Risk:

   • The possibility of loss, harm, or negative outcomes that could result from an action or decision.

2. Risk Management:

   • The process of identifying, assessing, and mitigating potential risks to minimize their impact on an organization or project.

3. Risk Assessment:

   • The evaluation of potential risks and their likelihood of occurrence.

4. Risk Analysis:

   • The study of potential risks, their impact, and the likelihood of their occurrence.

5. Risk Mitigation:

   • The actions taken to reduce or eliminate the impact of identified risks.

6. Risk Identification:

   • The process of recognizing and documenting potential risks.

7. Risk Control:

   • The implementation of measures to manage and reduce risks.

8. Risk Avoidance:

   • A risk management strategy that involves eliminating activities or decisions that could lead to potential risks.

9. Risk Transfer:

   • Shifting the responsibility for managing a risk to another party, such as through insurance or contracts.

10. Risk Tolerance:

    • The level of risk that an individual or organization is willing to accept.

11. Risk Appetite:

    • The willingness of an individual or organization to take on risk in pursuit of potential rewards.

12. Uncertainty:

    • The state of not knowing the outcome of a situation or decision.

13. Contingency Plan:

    • A plan prepared in advance to deal with unexpected events or risks.

14. Business Continuity Plan:

    • A plan to ensure that essential business functions can continue during and after a disaster or major disruption.

15. Risk Exposure:

    • The potential financial loss or harm that an organization faces due to risks.

16. Operational Risk:

    • Risks associated with the day-to-day operations and processes of an organization.

17. Financial Risk:

    • Risks related to the financial stability and performance of an organization.

18. Market Risk:

    • Risks arising from changes in market conditions, such as interest rates, exchange rates, or commodity prices.

19. Credit Risk:

    • The risk of a borrower defaulting on debt payments.

20. Reputation Risk:

    • The potential damage to an organization's reputation due to negative public perception.

21. Legal Risk:

    • The risk of facing lawsuits or legal challenges.

22. Compliance Risk:

    • The risk of non-compliance with laws, regulations, or industry standards.

23. Risk Matrix:

    • A tool used to assess and prioritize risks based on their likelihood and impact.

24. Risk Register:

    • A document that lists identified risks, their descriptions, and risk mitigation strategies.

25. Risk Communication:

    • The process of sharing information about risks with stakeholders.

26. Risk Monitoring:

    • The ongoing observation and tracking of identified risks.

27. Risk Response:

    • The actions taken to address identified risks.

28. Residual Risk:

    • The level of risk that remains after risk mitigation efforts have been implemented.

29. Risk Governance:

    • The framework and processes for managing and overseeing risk management activities within an organization.

30. Risk Culture:

    • The values, attitudes, and behaviors regarding risk within an organization.

31. Risk Indicator:

    • A measurable variable used to signal the presence of risk.

32. Risk Evaluation:

    • The process of comparing the results of risk analysis to risk criteria to determine the significance of risks.

33. Risk Treatment:

    • The selection and implementation of appropriate risk management options.

34. Risk Avoidance:

    • A risk response strategy to eliminate the risk or withdraw from the activity that gives rise to the risk.

35. Risk Transfer:

    • A risk response strategy to shift the impact of the risk to another party.

36. Risk Acceptance:

    • A risk response strategy to acknowledge the risk and take no action to address it.

37. Risk Awareness:

    • The level of understanding and knowledge about potential risks.

38. Risk Reporting:

    • The process of providing information about risks to relevant stakeholders.

39. Risk Planning:

    • The development of a comprehensive plan for risk management activities.

40. Risk Assessment Methodology:

    • The systematic approach used to evaluate risks.

Understanding these risk management terms will not only improve your vocabulary but also enhance your understanding of how organizations handle potential risks. Good luck with your IELTS preparation!