What is the process of identifying, considering, and making the most efficient defense against various types of risk called?

The process of identifying, considering, and making the most efficient defense against various types of risk is known as risk management. This approach involves assessing potential risks that could negatively impact an organization or individual, evaluating the likelihood and impact of these risks, and implementing strategies to mitigate or eliminate them.

Risk management encompasses a range of activities, including risk assessment, risk control, and risk financing, ensuring that the measures taken effectively reduce vulnerability to threats. This can involve developing policies, procedures, and protocols that help minimize risks, as well as understanding how to allocate resources toward risk mitigation effectively.

In contrast, asset management focuses primarily on managing investments and maximizing returns on financial assets rather than risk specifically. Financial planning involves creating strategies for achieving financial goals over time, including budgeting and forecasting, but does not concentrate solely on risk mitigation. Insurance management, while related to protecting against specific risks, is often just one component of a broader risk management strategy rather than the complete process itself.