Businesses face different types of risks today. A key ingredient for successfulmanagement is knowledge of risk management, and of how to choose riskmanagement tools to maximize efficiency. Although the type of risk will differdepending on the business, the fact is that risk means uncertainty, which can be apotential source of huge losses to the organization if they are not adequately plannedfor; risk management increases confidence in efficient management. Risk management,which is an integral part of the proper risk management system, is intended to predictuncertain events and select techniques to hedge or to reduce the risk. RiskManagement requires efficient internal monitoring and control, and should be basedon 3 main factors: risk management, internal audit, and internal control. The purposeof an internal audit is to evaluate and increase confidence due to risk management tofacilitate the achieving of the organization’s objectives. The auditor prepares anaudit plan, including methods of risk management, in response to the management’sefficient risk management requirements.