Risk management involves dealing with the possibility of things going wrong and the potential losses that could result. Different types of risks exist, such as credit risk and market risk, which can affect businesses and industries. To assess and protect against these risks, using simulation methods like Monte Carlo simulation is becoming popular. This method helps quantify the financial risks a company may face, especially when dealing with complex structures or organizations. By simulating various scenarios, companies can better understand and prepare for potential losses due to risk exposure.