Risk Management In Industries

 Risk management refers to the practice of identifying, evaluation, and prioritization of potential risks in advance, analysing them and taking precautionary steps to reduce or to control the risk. Industrial risks can come from various sources such as financial markets, threats from project failures in phases such as in development, production, design, or sustaining of life-cycles, credit risk, accidents, legal liabilities, natural causes and disasters, deliberate attack from an adversary, or events of uncertain or unpredictable root-cause. Generally there are two types of events i.e. negative impact events where the risks can be classified while positive events are classified depending upon the opportunities and resources available. Risk management standards have been developed by various institutions, including the Project Management Institute, the National Institute of Standards and Technology, actuarial societies, and ISO standards.