What term is used for the overall strategy that an organization uses to handle risks?

The term "risk management" refers to the overall strategy that organizations implement to identify, assess, and prioritize risks, followed by coordinated efforts to minimize, monitor, and control the probability or impact of unfortunate events. This comprehensive approach considers various types of risks, such as financial, operational, strategic, and compliance-related risks, enabling the organization to effectively safeguard its assets and ensure its objectives are met.

Risk management involves the ongoing process of evaluating risk exposure and implementing strategies to manage it, making it a critical function for organizations across all industries. It encompasses risk identification, risk analysis, risk response planning, and risk monitoring, thereby integrating risk awareness into the organization's culture and decision-making processes.

While concepts like risk governance, risk policy, and risk framework contribute to the overall risk management strategy, they primarily serve as components or structures within that broader strategy. Risk governance focuses on the organizational structure and accountability for risk management, risk policy refers to the specific guidelines and principles guiding risk management activities, and risk framework provides a structured approach to identifying and managing risk. However, the term that encompasses the overarching strategy of dealing with risks is clearly defined as risk management.