Entrepreneurship means identifying business opportunities and exploiting them forcefully. Opportunity is always associated with risk. Knowing how to asses risk is a prerequisite for success in business.
Risk management is not an end in itself, nor is it just a matter of compliance. It is an essential part of corporate strategy. Good risk management enables a company to better achieve its objectives. Identifying and hedging against risk early is the only way a company can create sustainable competitive advantage. Risk management is an integral part of business strategy and execution.
The challenge is that effective risk management cannot be delegated to one individual or a designated function in the company. Successful risk management is embedded in the organisation and becomes part of its culture. A good risk culture means dealing with risk in an open and responsible manner, and it is created by top management.