2. Risk Management

Risk management is the process of identifying, assessing, and prioritizing potential events that could cause harm or loss. It involves analyzing uncertainties and deciding how to address them, often by taking preventive measures or mitigating the impact. In everyday life, this could mean preparing for unforeseen events, like buying insurance for your home or following safety measures while driving. The goal is to minimize negative outcomes and ensure safety and stability in various situations, from personal decisions to business operations. By proactively managing risks, individuals and organizations can make informed choices and protect their interests.