Risks refer to the potential for loss or harm that can arise from a decision or action. They can occur in various contexts, such as finance, health, and safety. Understanding risks helps individuals and organizations make informed choices by weighing the possible negative outcomes against the benefits. In everyday life, risks can be managed through strategies like planning and preparation. For example, wearing a seatbelt while driving reduces the risk of injury in a car accident. Similarly, investing in stocks carries financial risks, but diversifying a portfolio can help mitigate potential losses.