Risk is any undesirable event involved in the process. Dealing with these undesirable events has to be done systematically. It offers other solutions to minimise the loss. They are different types of risks. They are physical risks, financial risks, legal risks, ethical risks. Managing the risks is important for decision making. All the employees should be aware of risks.Risk management is done in five steps. They are-Setting up the contextLoss identificationAnalysing and evaluating risksRisk treatment Monitoring the risks.