Risk is exposure to potential harm or loss. Risk management involves dealing with potential losses in a planned manner, such as having fire safety kits in malls to minimize hazards. Risk management aims to consciously take risks with full knowledge and understanding so they can be measured and mitigated. It also prevents unacceptable losses that could damage an institution's competitive position. There are several types of risk management, including credit risk, market risk, operational risk, regulatory risk, and environmental risk. Credit risk is the potential failure to meet obligations, while market risk involves losses from changes in interest rates, exchange rates, equity prices and commodity prices. Operational risk concerns losses from failed internal processes or external events, and regulatory risk involves complying with multiple regulatory