Business risk management refers to the process of identifying, assessing, and mitigating potential risks that could impact a business's objectives and operations. It involves analyzing various risks, implementing strategies and controls to minimize their impact, and monitoring and adapting these measures over time. Risk management aims to protect the business from financial losses, reputational damage, legal liabilities, and other adverse effects that can result from unforeseen events or uncertainties.

Risk management is important for businesses because it helps them proactively identify and address potential risks before they escalate into significant problems. By implementing risk management practices, businesses can minimize the impact of adverse events, protect their assets, maintain financial stability, and ensure continuity of operations. It allows businesses to make informed decisions, allocate resources effectively, and improve their overall resilience. Risk management also enhances the confidence of stakeholders, including customers, employees, investors, and insurers, as it demonstrates the business's commitment to managing uncertainties and protecting its interests.