See also Targeting Business Risk . Value is created by providing goods and services that fulfill the needs of the organization's customers or constituents.
Risk is the property that causes value to vary in uncertain ways.
The source of risk is change in the environment. The environment is a complex set of relationships and interactions among organizations and other elements. Value created by the organization varies as the needs of its customers change in response to changes in the environment. An organization creates value throughout its growth cycle, but in different ways. Managing risk means developing and keeping a blend of some order within the general process of disorder.