RISK MANAGEMENT
DEFINITION:
Risk management is the formalized way of dealing with hazards and it is the logical process of
weighing the potential costs of risks against the possible benefits of allowing those risks to stand
uncontrolled.
In other words, Risk management refers to the practice of identifying potential risks in advance,
analyzing them and taking precautionary steps to reduce the risk. It is a continuous interlocked
process and not an event.
HAZARDS AND RISK:
A hazard is anything that might cause harm, like, chemicals, electricity and more.
The risk is the chance, high or low, that somebody could be harmed by the hazards, with an
indication of how serious the harm could be.
RISK MANAGEMENT MATRIX:
Probability
of
Catastrophi
cCritical Moderate Minor Negligibl
e
