Risk management

Risk management - a set of methods and measures that allow to some extent predict the occurrence of risk events and to take measures for their reduction.

To successfully manage risky situations should follow these basic principles of risk:

A. Do not risk more than you own capital.

2. Do not risk large for small.

3. You must think about the consequences of risk.

Using these principles can make the overall scheme of risk management

Risk analysis involves collecting and processing data on aspects of risk, and quantitative and qualitative analysis.

The main task of qualitative analysis is to obtain information about the structure and properties of the object and the risks, identifying risk factors and circumstances that lead to risky situations.

Qualitative analysis - is to identify the sources, causes, risk factors, establish potential areas of risk types.

Quantitative analysis - a numerical definition of certain types of risk and risk of the project.

In the analysis of risk commonly used following assumptions:

- Loss of risk independent from one another;

- Loss of one line of business does not necessarily increase the probability of loss to another, with the exception of force majeure;

- The maximum possible loss should not exceed the financial capabilities of the participant.