Risk management is the identification, evaluation, and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor, and control the probability or impact of unfortunate events or to maximize the realization of opportunities.

What is the meaning of risk reduction?

Risk reduction deals with mitigating potential losses by reducing the likelihood and severity of a possible loss. ... In order to engage in risk management, a person or organization must quantify and understand their liabilities.

What is risk reduction examples?

Examples of risk reduction are medical care, fire departments, night security guards, sprinkler systems, burglar alarms—attempts to deal with risk by preventing the loss or reducing the chance that it will occur.