 Whenever we take any financial decisions that expose us to risky situations, it means if we decide to invest or to save or to take any type of financial decision, like we want to expand the business or we want to open a new shop or whatever is involved, whatever is there that involves financial decision making. So it involves at the same time, whenever we are trying to expand or we are going to reduce the size of the business, it involves risk. So therefore it is important to analyze that how different types of economic decisions are going to affect the value of risk attached to that particular decision. So as I said that it is related to whatever we have to do, whatever incurs money, whatever incurs time, the risk is always there. So a proper risk assessment and risk management is involved in order to come up with a better decision or resource allocation in a better way. So this is what economics is all about. It helps us in understanding or making good decisions about the allocation of the various types of resources, particularly when we are looking at the aspect that whatever is going to happen that involves risky situations or it is attached with risky situations and we are getting into risky situations because we want to generate some returns or make some profit out of it or we want to come up with some sort of benefit that could be in monetary terms or non-monetary terms. So therefore it is essential to look at this particular aspect also. So whenever we look at the overall functioning of an economy, we see that the basic objective or the optimal decision that is operating or the decision making process that is operating as a core value of a certain of the working of an economy that involves the consumption and the resource allocation of the households. So we see that there are a number of other characters in an economy. In any economy, we see a lot of characters or there are institutions in the form of households, there are institutions, there are various types of institutions, there are banks, there are governments, all these characters are available there or there are institutions or there are different types of people who are playing their roles. But the optimal decision making of any economy, whether it is circling or based on your households, how do you make decisions about your consumption and the different types of resources they have, when it comes to the other characters, as I told you, in any economy it is not just the household or the people, there are a number of other factors that help us in understanding the working of an economy. So the optimal decision making is also associated with households, but to make that particular decision making better and better, many institutions work and the government also works with it. So these are all things that help the economy to run smoothly. So basically, what are we concentrating on in economics or financial economics? We said that the primary role of the optimal decision making is of the households and the rest of the institutions and the government together to facilitate the optimal decision making of those households. So wherever you look at the role of the institutions or the role of the government or you look at the role of the households, whatever decisions that are being made, whether it is the work of resource allocation or whether they are making decisions about consumption, whether they are making decisions about investment or making decisions about saving, these are all things that are written from the mind. So this is something which is important to note and in order to have a better understanding of how the economic decisions are made by these three important participants of the economy, in order to have a comprehensive understanding of the risks that are associated with different types of economic decisions, we have to look at how the economic decisions are going to be the economic decisions are going to be affected by the risk associated by these three different types of participants of the economy. We can simply look at the effect of the economic decisions made by the firms and how different kinds of risks can influence those economic decisions. Thirdly, we need to look at that when the government takes economic decisions, so what kinds of risks do we have to face and how can we mitigate the negative effects of those risks, you can enhance the positive effects so that the smooth running of the economy can facilitate it.