The importance of the risk management process

Go back to the [[Risk Management Main Page]]

This expands on [[The risk management process]]

You need to think about the risk more than the solution. Knowing the risk makes knowing the solution much more solid.

Def: Hedging

• Use of financial contracts to manage risks

Know exactly the size and shape of your risk. How much are you liable for exactly? How exposed are you?

Which risks are you going to own? Decide if a risk is worth wearing or not. Is this a risk I really need to solve?

If you own a risk, address it. Do something about it and because you've measured it, make sure you address it appropriately. Don't rush in, check the numbers.

Keep an eye on it. Monitor your risk management plan. Make sure you're still managing current risks and not old ones.