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Enterprise Risk Management; a requirement as per Companies Act 2013

Activity risk is the process of identifying, analyzing and managing risk
Risk Management is relatively new but hot subject in India after Companies Act 2013.

Risk: is the chance that an event, trend or course of action will have either a positive or negative effect on an institution's ability to meet its strategic or operational objectives.

Activity Risk Management: is the process of identifying, analyzing and managing risks. It provides the methodology for integrating risk into planning and decision-making processes at the operational level.

Enterprise Risk Management: is the process of identifying, analyzing and managing strategic risks. It provides the methodology for integrating risk into the strategic planning and resource allocation processes at the strategic level.

Risk Analysis: is the process of determining the likelihood of a particular event, trend or course of action occurring and the impact on operational or strategic objectives if it does.

Risk Tolerance: sometimes known as risk appetite, is the level of risk the Company is willing to accept for any event, trend or course of action. Risk tolerance will vary depending on the potential effect of the risk on the Company's operational or strategic objectives.

Risk Treatment: sometimes known as risk control, is the measures used to modify the risk to fall within the Company's risk tolerance for that risk. Options include accept, mitigate, transfer or avoid the event, trend or course of action.

Risk Register: a list of identified enterprise risks which documents the risk analysis, risk scores, risk treatments, FCVP direction, results of risk treatments and status of each risk.