In the area of finance, danger control refers to the practice of figuring out potential dangers in advance, analyzing them and taking precautionary steps to lessen/lessen the threat. When an entity makes an funding decision, it exposes itself to a number of monetary dangers. The quantum of such dangers relies upon on the kind of monetary instrument. These economic risks is probably in the form of high inflation, volatility in capital markets, recession, bankruptcy, etc. So, as a way to lessen and control the publicity of funding to such dangers, fund managers and consumers practice danger manage. Not giving due significance to chance manipulate at the same time as making funding alternatives would possibly wreak havoc on investment in times of economic turmoil in an economy. Different stages of threat come connected with one-of-a-kind training of asset classes. For example, a set deposit is taken into consideration a much less volatile investment. On the opposite hand, funding in fairness is taken into consideration a volatile venture. While practicing risk management, equity shoppers and fund managers generally tend to diversify their portfolio a good way to decrease the exposure to danger.