Risks are an unavoidable part of a business, it is associated with the possible events or situations which threaten the achievement of organizational objectives. In simple words risks can be defined as an event or circumstances that affects the operations of the business. The activities of business cannot be separated from its risks but the entities must make an effort to identify the risks to which they are exposed to ahead of time and must be prepared to face such risks beforehand.
The term Risk Management refers to the processes of identifying, analyzing, and addressing the risk factors of the business. The main aim of Risk Management is to control all the possible risk factors as soon as possible and protect the business from any kind of unanticipated threats and losses. The type and degree of risks vary from business to business and Risk Management helps the business entities to identify the potential risks and take corrective
