Risk management occurs everywhere in the financial world. It occurs when an investor buys low-risk government bonds over riskier corporate bonds, when a fund manager hedges his currency exposure with currency derivatives, and when a bank performs a credit check on an individual before issuing a personal line of credit. Stockbrokers use financial instruments like options and futures, and money managers use strategies like portfolio and investment diversification to mitigate or effectively manage risk.
Risk management is a four-step process for controlling exposure to health and safety risks associated with hazards in the workplace.
Step 1: Identify hazards. Examples of common hazards which can lead to musculoskeletal disorders (MSD)
Step 2: Assess the risk.
Step 3: Control the risk.
Step 4: Review risk control.