What is Risk Management?

Risk Management Definition

Risk management is the action, or practice of making and executing actions that will mitigate the negative effects. Identifying a risk, evaluating the situation, and then acting or proceeding in a manner that will help the outcome become more favorable. When referring to supply chain risk management, it can relate to logistics distruptions, material availability, natural disasters, and/or other risks associated with keeping materials and product moving throught the supply chain.