Risk management refers to the systematic process of identifying, assessing, and mitigating uncertainties that could negatively affect the achievement of objectives, whether in business, projects, or everyday life. This practice involves a series of steps such as risk identification, risk analysis, and the development of strategies to manage or reduce the potential impact of those risks. Strategies could involve transferring the risk to another party, avoiding the risk altogether, reducing its impact, or accepting some level of risk as tolerable. While it's impossible to eliminate all risks, effective risk management helps organizations and individuals make informed decisions, allocate resources wisely, and improve their resilience against unforeseen challenges. Tools like risk matrices, scenario analysis, and risk assessment frameworks are often used to quantify and prioritize risks. The field of risk management is especially crucial in industries like finance, healthcare, and manufacturing, but its principles can be applied universally across different sectors and aspects of life.