The identification, evaluation and prioritization of risks is referred
to as risk management. It also involves the application of resources to
minimize, control and monitor the probability and impact of unfortunate
events. Risks can come from a number of different sources such as
uncertainty in financial markets, natural causes and disasters,
deliberate attack from adversaries, threats from project failures and
credit risk. There are some guiding principles for risk management.
These state that risk management should create value, be tailorable,
take human factors into account and be dynamic. The strategies that are
used to manage threats include reducing the negative effect or
probability of the threat, avoiding the threat, and retaining some or
all of the potential or actual consequences of threat. Most of the
topics introduced in this book cover new techniques and the applications
of risk management. It presents the complex subject of risk management
in the most comprehensible and easy to understand language. The book is
appropriate for students seeking detailed information in this area as
well as for experts.
