| Term | Definition |
|---|
| Risk | Uncertainty about outcomes that can be either negative or positive |
| Risk Management | The process of making and implementing decisions that will minimize the adverse effects of accidental losses on an organization |
| Business Risk | Risk that is inherent to the operations of a particular organization, including the possibility of loss, no loss or gain |
| Hazard Risk | Risk from accidental loss, including the possibility of loss and no loss. |
| Loss Exposure | Any condition that presents a possibility of loss, whether or not an actual loss occurs. |
| Enterprise Risk Management | An approach to managing all of an organization's key business risks & opportunities with the intent of maximizing shareholder value. |
| Cost of Risk | The total cost incurred by an organization because of the possibility of accidental loss. |
| Risk Management Program | A system for planning, organizing, leading and controlling the resources and activities that an organization needs to protect itself from the adverse effects of accidental loss. |
| Pre-Loss Goals | Risk Management Goals that should be in place even if no significant losses occur. (Such as Economy of Ops, Tolerable Uncertainty (reduced deterrence effects), Legaility, Social Responsibility.) |
| Post-Loss Goals | Risk Management Goals that should be in place in the event of a significant loss (such as: Survival, Continuity of ops, Profitability, Earnings Stability, Social Responsibility, Growth.) |
| Risk Management Policy Statement | A tool for communicating the goals of the risk management program and the roles that people thoroughout the organization have in achieving the organization's risk management goals. |
| Results Standards | Standards that focus on achievements regardless of the efforts they require.( measured in dollars, percentages, ratios or number of losses or claims.) |
| Activity Standards | Standards that focus on activity undertaken to achieve a particular result regardless of the success of that activity. (such as number of calls fieled, site visits, classes taught, etc.) |
Combine with other sets
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