risk-management
Meaning
The process of identifying, assessing, and controlling threats to an organization's capital and earnings.
Structure
Usage
Effective risk-management is crucial for the long-term stability of any financial institution.
The project manager presented a comprehensive risk-management plan to the stakeholders.
New regulations have forced companies to invest more heavily in their cybersecurity risk-management.
Etymology
The compound 'risk-management' is a modern business term that logically combines two established concepts. 'Risk' entered English via French and Italian from a post-classical Latin source, originally carrying connotations of maritime peril or navigating hazardous cliffs. 'Management' derives from the Latin 'manus' (hand), evolving through Italian and French to mean the act of handling or controlling affairs. The fusion of these terms in the mid-20th century reflects a systematic, professional approach to handling uncertainty, transforming the abstract concept of 'danger' into a tangible process that can be 'handled' or controlled through deliberate action and planning.
Analysis
risk: From Italian 'risco' or 'rischio' (danger), likely from a Romance base meaning 'to run into danger' or 'cliff'. In this compound, it functions as the noun object, the thing being managed. management: From Italian 'maneggiare' (to handle, train horses), from Latin 'manus' (hand). The suffix '-ment' denotes the action or result of an action. In this compound, it functions as the action noun, the process of handling.