Risk management

The process of identifying and evaluating risks and selecting and managing techniques to adapt to risk exposures. The New York Times Financial Glossary

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   Risk management is a 'middle office' function that sits between the dealing room and settlement. It involves revaluing all positions at least daily to estimate the risk of possible future losses on those positions and ensure that they are within acceptable limits.
   ► See also Middle Office, Mark to Market.

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risk management UK US noun [U]
MANAGEMENT, INSURANCE the activity of calculating and reducing risk, so that an organization does not fail or lose money: »

Companies often overlook fraud in their risk management.

Compare RISK ASSESSMENT(Cf. ↑risk assessment)
FINANCE the activity of calculating and reducing risk in a set of investments, so that investors do not lose money: »

We don't have the right kind of risk management expertise to manage these types of investments.


Financial and business terms. 2012.

Look at other dictionaries:

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