risk is the real proof when it comes to trading. It takes mental stability and being able to control emotions when the market situation is beyond the initial target when trading. So the importance of risk management because the market is so volatile that risk has become a part of trading. So for a trader at least minimizing losses is very important rather than continuously losing his assets.
It is for minimizing the possible losses.
A trader knows how to manage the risk and even calculate it if it's needed. This has become a standard for the traders because they're all for the safety of their trades from huge losses.