Synopsis There is a basic shift in the paradigm of risk management practices and has placed greater emphasis on the successful identification, quantification, mitigation, control and financing of risk. Evolving concepts of risk are leading to complex management perspectives requiring an integrated view of the finances and operations of a corporation. Today's risk manager must generate a comprehensive context of risks faced by the enterprises. The process of risk management involves the following: Recognition and understanding, measurement and, monitoring and control. In order to effective risk management, a comprehensive risk management policy has to be formulated incorporating a detailed structure of limits and guidelines to be followed and a Strong Management Information System (MIS) build up for continuous monitoring and reporting of risk exposures.