Risk management is the process of identifying, assessing, and prioritizing risks followed by coordinated efforts to minimize, monitor, and control the likelihood or impact of unfortunate events. It involves creating strategies to deal with potential risks, ensuring that organizations or individuals can prevent or mitigate any negative effects on their goals, operations, or resources.

The key components of risk management include:

1. Risk Identification: Recognizing potential threats or risks that may affect a project, organization, or individual.
2. Risk Assessment: Evaluating the severity and likelihood of identified risks.
3. Risk Control: Developing strategies to prevent or reduce the impact of risks, such as implementing safety measures, insurance, or contingency plans.
4. Risk Monitoring: Continuously tracking and reviewing risks to make adjustments as necessary and to ensure that risk management efforts are effective.
5. Risk Communication: Sharing information about risks and mitigation strategies with stakeholders to ensure a collective understanding.

Effective risk management helps to minimize potential losses and maximize opportunities for success by being proactive rather than reactive to possible threats.