Risk management is the process of identifying, assessing, and mitigating potential threats that could negatively impact an organization’s operations, assets, or objectives. It involves a systematic approach to understanding risks—whether financial, operational, strategic, or compliance-related—and developing strategies to minimize or control their impact. Effective risk management enables businesses to make informed decisions, allocate resources wisely, and prepare for uncertainties. By proactively addressing risks, organizations can reduce the likelihood of losses, enhance resilience, and seize opportunities with greater confidence. Ultimately, it is a crucial component of sound governance and long-term success.