What is the systematic application of procedures for identifying, analyzing, and controlling risk?

The systematic application of procedures for identifying, analyzing, and controlling risk is best described as risk management. This concept encompasses a comprehensive approach that involves not only recognizing potential risks but also evaluating their impact and developing strategies to mitigate, transfer, accept, or eliminate those risks.

Risk management includes several processes: it begins with risk identification, where potential risks are recognized; followed by risk analysis, which assesses the likelihood and consequences of these risks; and concludes with risk control measures that aim to manage these risks effectively. This holistic view is crucial for organizations to minimize adverse impacts on their objectives.

In contrast, risk assessment generally refers to the process of risk identification and risk analysis, but it does not include the controlling aspect that is integral to risk management. Risk identification focuses solely on recognizing risks, while risk analysis centers on evaluating the risks without encompassing the entire management process. Therefore, the breadth and depth of activities involved in managing risks justify why risk management is the most accurate term for the systematic application of these procedures.