Risk Management Theory

Risk Management Theory involves identifying, analyzing, and addressing potential risks that could negatively impact an organization or project. It focuses on understanding uncertainties, evaluating the likelihood and impact of various risks, and implementing strategies—such as avoiding, mitigating, transferring, or accepting them—to minimize adverse effects. The goal is to make informed decisions that balance risk with opportunity, ensuring stability and achievement of objectives. Essentially, it provides a structured approach to proactively handle uncertainties, helping organizations navigate complex environments responsibly and effectively.