Answer:
Risk management is important because it allows a business to control – and often times prevent – the financial, political, social and cultural ramifications associated with risks. ... Regardless of the risk level, the business must determine the potential impact the risk would have on its bottom line
All forms of risk, whether they are classified as speculative or hazard risks, comprise common elements. This notion is illustrated in Figure 2, which highlights the following four basic components of risk: (1) context, (2) action, (3) conditions, and (4) consequences.
