Risk means possibility of losses due to the uncertainty. Business organization is closely associates with risk. Nobody can imagine the business without risk. It is the integral part of business. Generally, risk refers the uncertainty. There are various events of uncertainty in business which may causes of losses in future. Business risk is a circumstance or factor that may have a negative impact on the operation or profitability of an organization. The degree of risk may be varied as per different events and nature of business. If business organization takes higher risk, the chance of getting profit will be high. If business organization takes lower risk the volume of profit will be low.
Risk management becomes more important for any business organization. Various risks are introduced from heavy uses of technology in business. Some risks may be come from external factors and some from internal factors. Both types of risks should be carefully handled or managed. Risk management, if not done properly, can lead to loss of opportunities.
Risk management is a process of identifying the business risks and selecting most useful management technique to treat those risks in order to save the business organization from unfavorable occurrence or losses.
Risk management is a regular process. It is not one time task. Therefore, management needs to evaluate impact and control over the business risk. It is ongoing project and check for any new risk. Risk management is keeping control over the risk. Hence, it is quite possible than an organization may suffer losses, even after risk management. But it can be minimized and precautionary measures can be taken. It should be conducted by professionals, who are experienced enough to bring forth idea and promote practices for the benefit of the organization.
