Every business is associated with various types of risk due to future uncertainty.Businesses face all kinds of risks i.e. Strategic Risk, Compliance Risk, Financial Risk, Operational Risk, Good will or Reputational Risk. Some of which can cause serious loss of profits or even bankruptcy. But while all large companies have extensive “risk management” departments, smaller businesses tend not to look at the issue in such a systematic way.
Risk Management is the identification, analysis, assessment, control and minimization of unacceptable risks. An organization may use risk assumption, risk avoidance, risk retention, risk transfer or combination of all to manage its business risk.