1. Risk Management Definition
Risk management is the process of identification, analysis and acceptance or mitigation of uncertainty in investment decisions.
Risk management involves understanding, analyzing and addressing risk to make sure organizations achieve their objectives.

2. Risk Control Measures
The steps that users need to take to ensure that exposures are minimized.
 Examples of Risk Control Measures
Personal Protective Equipment
  Housekeeping
  Inspections
  Tools and Equipment
  Policies, Procedures, Processes
  Supervision
  Contract Management and Administration
  Performance Expectations
  Training

3. Pure and Speculative risk
Pure risk involves no possibility of gain; either a loss occurs or no loss occurs
Speculative Risk involves three possible outcomes: loss, gain or no change
Example:
An example of pure risk is the risk of becoming disabled as a result of illness or injury.
Trading in stock market may result in making either a profit or loss or neither a profit nor loss i.e. no change in the investment value.
Insurance
Pure risk - the risk of loss without the possibility of gain- is the only type of risk that can be insured.
Speculative Risk cannot be insured

4. Risk As defined in insurance, is the possibility of a loss.
If there is no possibility of loss, then there is no risk. Likewise, if loss is a certainty, then again, there is no risk, even if the outcome is undesirable.
Thus, the probability of a loss must be between 0 and 1, not inclusive.
However, sometimes risk cannot be measured.

5. Loss
A loss can be broadly defined as an undesirable outcome or as a less desirable outcome.

6. Subjective Risk
Subjective risk is what an individual perceives to be a possible unwanted event.
How much subjective risk people experience depends on their history and their expected possibility of its occurrence—subjective probability.

7. Objective Risk
The actual losses for a sample in a given period, which can differ significantly from expected losses
Based on the sample size 

8. ISO Definitions
International Organization for Standardization (ISO) 2009 definition of risk management: “coordinated activities to direct and control an organization with regard to risk.”
The ISO definition of risk as “the effect of uncertainty on objectives.”

9. Risk, Hazard, Peril
A risk is simply the possibility of a loss, but a peril is a cause of loss. A hazard is a condition that increases the possibility of loss.
For instance, fire is a peril because it causes losses, while a fireplace is a hazard because it increases the probability of loss from fire.

10. Risk Control Methods Avoidance Loss Prevention Loss reduction
Segregation
Separation
Duplication

11. Avoidance
There’s a great deal of risk. You don’t want to assume the risk and it can’t be transferred, so you avoid the risk altogether. This method eliminates any possibility of loss. It is achieved either by abandoning or never undertaking an activity or asset.

12. Loss Prevention
Reduces the frequency or likelihood of a “particular” loss. Examples include: 
Improve security measures to reduce the possibility of arson or theft.
Improve maintenance of facilities to reduce the possibility of a tripping hazard.

13.  Loss Reduction
Reduces the severity or cost of a “particular” loss. Examples include: 
Require the use of seatbelts to reduce the chance of bodily injury in a vehicle collision.
Require the use of hearing protection to reduce the chance of a hearing loss.
Reduce the cost of workers’ compensation claims through the use of return to work programs. 

14. Segregate Losses
Arrange your agency’s activities and assets to prevent one event from causing loss to the whole. There are two methods – duplication and separation.

15. Separation
your activities or assets are distributed among multiple locations. 

16. Duplication
relies on spare or duplicates that are only used if assets or activities suffer a loss. 

17. Quadrants of Risk
Although no consensus exists about how an organization should categorize its risks, one approach involves dividing them into risk quadrants:
Hazard risks arise from property, liability, or personnel loss exposures and are generally the subject of insurance.
Operational risks fall outside the hazard risk category and arise from people or a failure in processes, systems, or controls, including those involving information technology.
Financial risks arise from the effect of market forces on financial assets or liabilities and include market risk, credit risk, liquidity risk, and price risk.
Strategic risks arise from trends in the economy and society, including changes in the economic, political, and competitive environments, as well as from demographic shifts. 

18. Risk Management Framework
Six crucial components that should be considered when creating a risk management framework; they are:
Risk identification: Identifying the risks a company faces
Direct Losses and Indirect Losses
Risk measurement: Risk measurement involves the use of quantitative tools are critical aids for supporting risk management,
Example: Probability Distributions of Losses
Risk Mitigation: Activities undertaken to eliminate or minimize risks.
Risk Reporting & Monitoring: Report regularly on specific and aggregate risk measures in order to ensure that risk levels remain at an optimal level.
Risk Governance: Risk governance is the process that ensures all company employees perform their duties in accordance with the risk management framework.

19. Risk Management Process
Scan the environment
Identifying risks (exposures to accidental losses)
Analyzing risks
Examining feasible alternative risk management techniques
Selecting the best risk management technique
Treat risks (implementing the chosen risk management technique)
Monitoring the results of the chosen techniques to ensure the risk management program is effective