Every business has risks associated with it. This is why risk management is necessary for every business organization. As a matter of fact, it is one of the Factors That Must Be Considered Before Starting A Business. The objective of this article therefore is to explore the strategies on how to manage risks in business. In order to attain this objective, it is pertinent to begin with the semantic analysis of risk management because the strategies on how to manage risks are encapsulated in the meaning of risk management.

According to Investopedia, risk management is a two-step process - determining what risks exist in an investment and then handling those risks in a way best-suited to your investment objectives. The Institute of Risk Management defines risk management as the process which aims to help organizations understand, evaluate and take action on all their risks with a view to increasing the probability of their success and reducing the likelihood of failure. Risk management, in the view of IRMI, is the practice of identifying and analyzing loss exposures and taking steps to minimize the financial impact of the risks they impose. Finally, Wikipedia defines risk management as the identification, assessment, and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities.

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