What is risk????Risk is simply uncertainty of an event going to occur sometime in future whose outcome may be favorable or unfavorable. Risk is Favorable if its outcome tends to benefit the person or the things associated with it. Risk is unfavorable if its outcome tends to disrupt the normal process or directly affecting the state of person. There are many types of risk such as
1) Financial risk-
Financial risk means unexpected variability on return on investment.
2) Economic risk-
Economic risk means lowering income of business or increasing expenditure & increasing inflation.
3) Market risk-
Market risk means changing preferences of customer in the market about product.
4) Political risk -
Political risk mean changing rules & regulation related to business or person.
Risk management means managing all that risk before any problem arise & try to minimize that risk or search alternative way to minimize that risk . Risk management done for avoiding future losses in business by taking proactive measures.
no risk ......no gain
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