Risk management is that part of the business that identifies, evaluates, controls and reviews risks. By that, the organization faces only the exposure to the risks necessary to achieve its objectives. Risk is an inherent part of a business and accompanies all the daily decisions. There are standards applied as a tool to minimize risk and enhance decision making.

There are various types of risks. Some can be external in nature, out of the control of the management. Every day, new threats show up and such risks may come from political environment, terrorist attacks or exchange rates. Internal risks include non-compliance with labour law or in financial reporting. These types can be controlled by the management to a great extent.

Due to a diversity of risks, business continuity and management are top subjects for the media. There are, however, companies that expose themselves to unnecessary risk by no protection or prevention activities. Business and managerial issues, like delayed payments or changes in plans, belong to a wider spectrum of management but don't relate to business continuity directly.

These two practices, management and business continuity, go hand in hand. First, risk management takes care of the basic elements that a business needs to function. A business continuity plan helps the company to foresee what it needs to be done before and after an incident occurs. The result is a better protection of the systems, property and staff.

Business continuity plans are not limited to a division or a vendor, but they affect the entire company. The most important factor in risk management is this plan that protects not only the business, but the reputation, trademarks and goodwill. Corporate management means good management practice and good management. Ignoring or mismanaging the risks will end with loss of shareholders' wealth and reputation and other undesirable consequences.

In simple words, risk management means keeping risk under control. It also means flexibility when it is most needed.