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Section 5 addresses the measurement and management of risks.
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zed along the lines of these questions. Section 2 describes the risk management process. Section 3 discusses risk governance and risk tolerance. Section 4 covers the identification of various risks. <span>Section 5 addresses the measurement and management of risks. Section 6 provides a summary. <span><body><html>

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Reading 40  Risk Management: An Introduction Intro
The fact that all businesses and investors engage in risky activities (i.e., activities with uncertain outcomes) raises a number of important questions. The questions that this reading will address include the following: <span>What is risk management, and why is it important? What risks does an organization (or individual) face in pursuing its objectives? How are an entity’s goals affected by risk, and how does it make risk management decisions to produce better results? How does risk governance guide the risk management process and risk budgeting to integrate an organization’s goals with its activities? How does an organization measure and evaluate the risks it faces, and what tools does it have to address these risks? The answers to these questions collectively help to define the process of risk management. This reading is organized along the lines of these questions. Section 2 describes the risk management process, and Section 3 discusses risk governance and risk tolerance. Section 4 covers the identification of various risks, and Section 5 addresses the measurement and management of risks. Section 6 provides a summary. <span><body><html>


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