{"ok":true,"canonical_url":"https://dealroom.so/glossary/risk-management","api_url":"https://dealroom.so/api/public/glossary/risk-management","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"risk-management","term":"Risk Management","group":"Reading the business","definition":"The process of identifying, assessing, and mitigating potential risks that could negatively impact a business's operations or finances.","what_it_means":"As a buyer, your due diligence involves extensive risk management. You're evaluating operational, financial, market, and legal risks of the target business. A strong risk management plan, including key man insurance or contingency plans for critical suppliers, will reassure your lender and protect your investment.","url":"https://dealroom.so/glossary/risk-management","official_sources":[],"related":[{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"},{"slug":"key-man-insurance","term":"Key man insurance","url":"https://dealroom.so/glossary/key-man-insurance"},{"slug":"compliance","term":"Compliance","url":"https://dealroom.so/glossary/compliance"},{"slug":"business-plan","term":"Business plan","url":"https://dealroom.so/glossary/business-plan"}],"related_questions":[{"question":"How does the SBA verify my business management experience?","url":"https://dealroom.so/sba-loans/basics/how-does-the-sba-verify-my-business-management-experience"},{"question":"Is previous business ownership or management experience required to qualify?","url":"https://dealroom.so/sba-loans/basics/is-previous-business-ownership-or-management-experience-required-to-qualify"},{"question":"How does common management trigger affiliation for size standard purposes?","url":"https://dealroom.so/for-lenders/questions/how-does-common-management-trigger-affiliation-for-size-standard-purposes"},{"question":"How does the SBA define \"management experience\" for a business acquisition?","url":"https://dealroom.so/sba-7a/questions/how-does-the-sba-define-management-experience-for-a-business-acquisition"},{"question":"How does common management trigger affiliation for SBA size standard purposes?","url":"https://dealroom.so/sba-7a/questions/how-does-common-management-trigger-affiliation-for-sba-size-standard-purposes"},{"question":"What constitutes 'common management' triggering affiliation for SBA 7(a) size determination?","url":"https://dealroom.so/for-lenders/questions/what-constitutes-common-management-triggering-affiliation-for-sba-7-a-size-determination"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Risk Management","url":"https://dealroom.so/glossary/risk-management","source_type":"DealRoom Data"}}