Risk management is an emerging concept in modern business. It is the process that identifies loss exposures faced by the organization and selects the most appropriate techniques for treating such exposures. In the past, risk management was limited which includes property risk, liability risk, and personal risk. Now, Risk management has greater scope in modern business

Risk management is the process of identification and analysis of uncertainty in investment decision-making. Generally, risk management occurs anytime to quantify the losses in an investment. Then, it takes the appropriate action given to their investment objectives and risk tolerance.

According to J. L. Papps and E. F. Brigham, "We define any decision whose outcome is less than certain as being risk, and we say that such decisions are subjects to risk and uncertainty."

According to George E. Rejda, "Risk management is a process that identifies loss exposures faced by an organization and selects the most appropriate technique for treating such expenses."

In conclusion, risk management is the process of managing the risk of uncertainty and unfavorable events. It helps to reduce the losses due to the uncertainty and unfavorable situation.