The dynamic environment of the modern world, business is exposed to risks of all kinds. While managing a business, one has to take a holistic view of all the aspects, and it is important to know all the risks that you may be facing.
Risk-management is the process of identifying these risks and planning how to deal with them. The first step in risk-management is to identify, and define the risks you think will be faced in the future. The next step is to analyse the impact of those risks on your business, and prioritise them accordingly. Those risks, which have a larger impact, should be dealt with first. Finally, risk-management includes planning how to counter those risks, so that they do not adversely affect your business, and then taking those necessary steps.