Risk management is the process of identifying, assessing, and controlling threats to an organization’s capital and earnings. These threats, or risks, could stem from a wide variety of sources, including financial uncertainty, legal liabilities, technology issues, strategic management errors, accidents, and natural disasters. Essentially, risk management involves analyzing the potential risks that a business or organization faces and then taking appropriate steps to mitigate or prepare for those risks, ensuring that the entity can achieve its objectives and continue operating effectively.
