Risk management is the process of identifying, assessing, and controlling potential risks that could negatively impact an organization, project, or activity. It involves analyzing possible uncertainties, evaluating their likelihood and impact, and implementing strategies to minimize or mitigate their effects. Effective risk management helps organizations make informed decisions, protect resources, and ensure smooth operations. Common steps include risk identification, risk analysis, risk response planning, and continuous monitoring. By proactively managing risks, organizations can reduce losses and improve overall performance and resilience.