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Risk management is the identification, assessment, and prioritization of risks (defined in ISO 31000 as the impact of uncertainty on objectives) and then the coordinated and economical use of resources to minimize, monitor, and control the likelihood or impact of unfortunate events[1] or utilization maximize opportunities.

Risks can arise from various sources, including uncertainty in international markets, threatened project failure (at any stage of the design, development, production, or maintenance life cycle), legal obligations, credit risks, accidents, natural causes, and catastrophes. Deliberate enemy attack or events of uncertain or unforeseeable cause.


Risk management has appeared in scientific and management literature since the 1920s. It became a formal science in the 1950s when articles and books entitled “Risk Management” appeared. Search for libraries. Most research initially focused on finance and insurance.

Commonly used risk management vocabulary remains defined in ISO Guide 73:2009 as “Risk Management.” Vocabulary.” In ideal risk management, there is a prioritization process in which risks with the most significant losses (or consequences) and the highest probability of occurrence are addressed first.

Risks with a lower probability of occurrence and more minor losses remain addressed in descending order. In practice, the overall process of risk assessment can be difficult. The balance between the resources used to mitigate  risks with a high probability of occurrence but low loss and risks that lead to a high loss but lower probability of occurrence can often remain misallocated.


These methods broadly include the following, performed approximately in the following order:

  • Identifying threats
  • Assessing the vulnerability of critical assets to specific threats
  • Determining the risk (i.e., expected probability) and consequences of specific (types) of threats and attacks on specific assets)
  • Identify ways to reduce these risks
  • Prioritize risk mitigation measures.

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