Risk management is the practice of identifying, assessing, and addressing potential risks in order to minimize any negative impacts they may have. It helps businesses and organizations minimize losses and maximize rewards by proactively avoiding or minimizing the impact of potentially adverse events. Risks can come from a variety of sources such as natural disasters, financial markets, industry changes, or operational mistakes. It is an integral part of business operations and requires appropriate strategies to manage the risk. Generally, risk management consists of three key components: identification, assessment, and control.