BizSugar.com › Management › The Role of Risk Management in Business

The process of identifying, analyzing and either mitigating or accepting the unforeseen incidents in investment decision-making is known as risk management. Basically, risk management is carried out by fund managers or investors. They analyze and make an attempt to quantify the risk factor or losses in a potential investment and then take adequate measures or actions according to their risk tolerance and investment objectives. Inadequate management of risk can bring in huge losses for individuals as well as companies.