Businesses face many risks, anf one of those is losses, therefore proper management should be a central part of any business' strategy . Management helps you to identify and address the risks facing your business and in doing so increase the likelihood of successfully achieving your businesses objectives.

Losses management process involves:

methodically identifying the  losses in your business
assessing the likelihood of an event occurring
understanding how to respond to these events
putting systems in place to deal with the consequences
monitoring the effectiveness of your losses management approaches and controls
As a result, the process of  management:

improves decision-making, planning and prioritisation
helps you allocate capital and resources more efficiently
allows you to anticipate what may go wrong, minimising the amount of firefighting you have to do or, in a worst-case scenario, preventing a disaster or serious financial loss
significantly improves the probability that you will deliver your business plan on time and to budget
management becomes even more important if your business decides to try something new, for example launch a new product or enter new markets. Competitors following you into these markets, or breakthroughs in technology which make your product redundant, are two risks you may want to consider in cases such as these.