The following extract is taken from an essay produced on the topic of Accounting
Defining Risk Management
Hubbard (2009) argues that there are different definitions that can be used for what risk management means. Such definitions vary depending on the wider context in which the term is used but also intended. Hubbard (2009) supports that risk management can be defined as “The identification, assessment, and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events” (p.10). According to Burt and Pinkerton (1996) risk planning and identification represents the first stage in which the involved organisational actors seek to understand the objectives they seek to meet as well as the factors that will impact on those decisions. Neef (2001) argues that by identifying the nature of factors that could jeopardise the development of the project management and employees are in a position to align their actions in an effort to avoid unprecedented consequences.