Article | REF: G9000 V1

First steps in risk management

Author: Jean LE RAY

Publication date: January 10, 2012

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3. Risk mechanism in business

We're now going to focus on the company. Let's be clear: the term "enterprise", which can be replaced by "organization", is to be understood here in its broadest sense, which means that it refers to the most diverse types of organizations: private or public, government agencies, companies, associations... The legal form is of little importance.

3.1 Additional definitions

A negative risk is the threat that an event, action or inaction, the likelihood of which is uncertain, will affect a company's ability to achieve its objectives. A positive risk is the opportunity that an action or event, the likelihood of which is uncertain, may improve a company's ability to achieve its objectives.

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Risk mechanism in business