What is Risk Management?
Risk management is the systematic process of identifying, assessing, prioritizing, and responding to uncertainties — threats and opportunities — that could affect an organization's ability to achieve its strategic, operational, reporting, and compliance objectives. It encompasses the policies, processes, and practices through which organizations manage risk exposure across all functions and levels.
The Risk Management process
- Risk identification: recognizing potential events — internal and external — that could affect objectives
- Risk assessment: analyzing the likelihood and potential impact of identified risks
- Risk response: deciding whether to avoid, accept, reduce, or transfer each risk
- Control activities: implementing the controls and safeguards that execute the chosen risk response
- Monitoring: continuously evaluating whether risk management activities are effective
Risk Management vs. ERM
Risk management can be applied at any organizational level. Enterprise Risk Management (ERM) applies it systematically across the entire organization, integrated with strategy and performance management. See: risk management — definition and strategies.
Financial risk management
For finance teams, risk management covers: financial reporting risk (misstatements, control failures), fraud risk (occupational and external), compliance risk (SOX, FCPA, Sapin II violations), operational risk (process and system failures), and liquidity risk.
Risk Management and Supervizor
Supervizor's financial risk discovery platform provides the data foundation that risk management programs need — surfacing where financial risk is actually concentrating, not just where management believes it is, based on continuous analysis of 100% of transactions.
Related Supervizor pages
→ Risk management — definition, types, and strategies
→ AI Insights — financial risk discovery and prioritization