What is risk Management??

Nowadays when present global competitive and knowledge based environment is a prime concern, Risk management has become very crucial part of present business life. Increasing Insolvency rate has re-emphasized the importance of risk management .Risk is not a bad thing and failure is often a key to learning which prepares the way to success. So risk is not harmful if we handle it properly as it provides opportunity.

 Risk management is a concept which denotes the potential negative impact on the future projects or events.In other

way risks are event or happenings, which may occur and if occurrence may have bad or negative impact on the project.

Risk can be said:-

1. The chance of loss.

2. The probability of loss.

3. Uncertainty.

4. The dispersion of actual results from expected ones.

Risk may be coined as uncertainties in result. Risk is a state of uncertainty where some of the possibilities involve risk but not risk without uncertainty. It can be said one may have uncertainty without having risk but none can have risk without uncertainty. We can be uncertain about the success of any project but we have no risk if we don’t have any interest in the project.

Risk is not a process for avoiding risk. Because risk is essential for the growth. Properly Implemented risk management can allow the company to undertake the higher level of risk thereby achieving a greater benefit because risk have been identified, understood and well managed.