Risk management includes a range of practices aimed at minimizing potential risks that may affect blockchain networks and decentralized finance (DeFi) platforms. This involves the analysis of possible blockchain vulnerabilities, management of legal and regulatory exposures, and establishing protocols for incident response to security breaches. Effective risk management ensures that stakeholders can soundly invest in or utilize blockchain technology without disproportionately exposing themselves to financial or operational harm. Tools such as auditing smart contracts, implementing robust cybersecurity measures, and maintaining compliance with regulatory guidelines are central to this process.