The ability of predicting what the future holds and choosing effectively among varying alternatives lies at the center of contemporary societies and organizations. Risk management helps us navigate over a broad range of decision-making processes, from making investment decisions to safeguarding our health, from waging war to planning families, from paying insurance premiums to wearing a seatbelt when we drive, from planting sugar canes to promoting delicious sweets, and many other aspects of life.

Nowadays, people and organizations rely way less on traditions and superstition than they did in the earlier days, and this may not be due to mankind being more rational itself, but rather because of our ability to understand risk, which allows us to make more informed and rational decisions.

The opportunity to manage risk, including here the amount and type of risks that the organizations accept to pursue or retain in order to make forward-looking choices, are key ingredients that catalyze the progress of the economic system.

Risk is an inseparable part of any business which affects its operations and activities, leading them to implement proper risk management processes to effectively manage and treat such risks. Successful organizations are those that have the ability to identify and manage risks, before those risks become destructive actualities that impair the organization’s reputation and its’ ability to operate.