The Kolmogorov Backward Equation is a fundamental concept in probability theory and stochastic processes. It describes how the probabilities of different states in a system evolve over time. Specifically, it provides a way to calculate the future probabilities of a process based on its current state and the transition rates between states. This equation is particularly useful in fields like finance, physics, and biology, where systems often change randomly over time. By using the backward equation, researchers can model and predict the behavior of complex systems, helping to understand phenomena such as stock price movements or population dynamics.