Risk and Risk Management - A USDA Fact Sheet

摘要

Risk management, in a business context, is about reducing the cost of risk, which includes the cost of managing risk. No business is risk-free, and risk management won't eliminate all risks. Risk management is about 3 R's: returns, risks, and ruin. Every business and every person faces risks each day, but what is risk? People have different attitudes about risk. Some will wager a week's pay at a casino, while others will hide their money under a mattress. A person's aversion to risk is a key factorin the extent to which they will try to manage their risks. In general terms, people often think of risk as the chance of something bad happening. "Bad" and "chance" are two key elements of risk. In financial terms, risk is the possibility of financial loss.