ABSTRACT
How do we de“ne risk? There are many variations in the de“nition of risks. Where safety is concerned, the de“nition proposed by the authors of this book is as follows: Risk is the probability or threat of an incident occurring that may result in damage, injury, liability, loss, or other adverse consequence resulting from either external or internal weaknesses in the organizational SMSs that can be reduced to acceptable levels through coordinated actions. All organizations are faced with numerous business risks. Common among these risks are “nancial and operating risks. In this chapter, we would like to discuss how risks are introduced into the business and strategies for managing these risks. It must be pointed out that the most destructive types of risks are those that are not known since there is no means of preparing for the unknown.
