Risk Management is the practice of trying to minimise the overall risk of your investments through methods such as diversification (having investments in different things) or buying insurance.

For example, Al might decide to sell his shares in a company and deposit the money in the bank because he believes that there is a large risk that the company will lose money, the share price will fall and he will lose lot of money. He might also decide to diversify his investments by selling one of his home units and investing the money in treasury bonds to make sure that he doesn't lose too much money if the property market falls.