Risk Management-An Analytical Study
In finance, risk is the probability that an investment's actual return will be different than expected. This includes the possibility of losing some or all of the original investment. A fundamental idea in finance is the relationship between risk and return. The greater the potential return one might seek, the greater the risk that one generally assumes. Risk management is an activity which integrates recognition of risk, risk assessment, developing strategies to manage it, and mitigation of risk using managerial resources. Some traditional risk managements are focused on risks stemming from physical or legal causes (e.g. natural disasters or fires, accidents and death).