The terms used to talk about risk management can sometimes be complicated. Here are some definitions to help you understand this area better.
In risk management, a top-down approach provides a general overview of the potential risks run by a company.
The analysis of the worst-case scenario looks at the probability of each risk occurring and the magnitude of damage. Companies must, therefore, always anticipate the worst (worst case).
The risk profile indicates how and when the company may be affected by the potential risks.