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The beginning of the twentieth century witnessed radical changes in the structure and nature of business operations of both financial and non-financial companies on account of phenomenal liberalisation, globalisation and privatisation concepts since 1990s in the Indian economy. Along with this, financial markets developed at an exponential rate with new financial instruments, to provide uninterrupted access to the financial requirements of the business corporations in India. The total number of business corporations, volume of transactions, capital requirements, and market capitalisation of the companies in the financial markets have alarmingly increased in the last five decades due to the rapid progress of technological revolution. Added to this, economic factors (like interest rate changes, inflation rates, tax incentives, investors or shareholders expectations, etc.), political factors (economic system, rules and regulations of trade policies, environmental issues, changing patterns of employment, overlaps between government departments, licensing etc.) social factors (customer demands and expectations, growth in the consumer awareness, trade unions etc.) and internal factors (vision and mission of the corporations, culture of the industry, etc.) greatly influence and pose a threat to the functioning of the business operations. These factors in turn give rise to various elements of risk.