Risk management definition

Etymology

This term relates very specifically to the field of study denoted by the term and as such is a usage specific term. The formal definition of risk is used.

Noun

The process of determining the maximum acceptable level of overall risk to and from a proposed activity, then using risk assessment techniques to determine the initial level of risk and, if this is excessive, developing a strategy to ameliorate appropriate individual risks until the overall level of risk is reduced to an acceptable level.
- 2002: InsTech.info, LLC, A short history of risk management: 1900 - 2002 at http://www.instech.info/utaustin/DOWNLOADS/Hist_of_RM_2002.pdf
  
  1921: Frank Knight publishes Risk, Uncertainty and Profit, a book that becomes the keystone in the risk management library.
- a2006: University of Surrey website, Risk Management History read at http://portal.surrey.ac.uk/portal/page?_pageid=823,181134&_dad=portal&_schema=PORTAL
  
  Even if it has deeper foundations, risk management, as it is practiced today, is essentially a post-1960s phenomenon.
- 2006: BBC News website, How do you judge offenders' risk? read at http://news.bbc.co.uk/1/hi/uk/4828832.stm
  
  Where release is recommended, a "risk management plan" outlining how the offender will be managed in the community and detailing recommended licence conditions, is also submitted.