NATURE OF RISKS


 Nature of Risks

Risk may bear positive or negative results or may simply result in uncertainty. For example where the Municipal authorities of a metropolis decide to implement a Metro Rail project; it is with the objective of reducing traffic and travel time for city residents, however, if there are frequent fatal accidents at the Metro Rail resulting in loss of human life and public property, the decision of Municipal authorities to implement Metro Rail project would be seen in a different light. Therefore, risks may be considered to be related to an opportunity or a loss or the presence of uncertainty for an organization. Every risk has its own unique nature and characteristics that require study, management or analysis.

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