Risk management involves putting processes, methods and tools in place to deal with the outcomes of events you have identified as major threats for your business.
This could be something as simple as setting aside financial reserves to ease cashflow problems if they arise. Another example could be ensuring effective computer backup and IT support procedures for dealing with a systems failure.
Business continuity plans
Programmes which deal with threats identified during risk assessment are often referred to as business continuity plans. These set out what you should do if a certain event happens, for example, if a fire destroys your office. You can't avoid all risk, but if you create a business continuity plan you can reduce the disruption to your business.
Risk assessments will change as your business grows or as a result of internal or external changes. This means that the processes you have put in place to manage your business risks should be regularly reviewed. Such reviews will find improvements to the processes and also can indicate when a process is no longer necessary.