A concept of risk management
Smith et al. (2006) provide a comprehensive description of the concept of RM and how it can be used in practice. According to the authors, risk management cannot be perceived as a tool 22 to predict the future, since that is rather impossible. Instead, they describe it as a tool to facilitate the project in order to make better decisions based on the information from the investment. In this way, decisions based on insufficient information can be avoided, and this will lead to better overall performance. In the literature, RM is described as a process with some predefined procedures. The scope of its definition differs among the authors, however the core information is the same. From a number of definitions which can be found in the management literature Cooper et al. (2005) explanation brings the essence of this concept.