well kk, to reduce risks, the mango seller will buy optimal quantity of mangoes so that he wont be left with surplus to rot, buy at the lowest price for the given quantity and quality so that if there are no buyers at the selling price, his loss is lowest, and try to sell at the optimal price, slightly lower than the prevalent price or much higher (in an inefficient market depending on the inefficiency ) to clear his stock faster to avoid the risk of getting stuck with rotten mangoes. so a proper risk management plan incorporates everything. things that we usually dont consider, like innovation, quality etc, cos otherwise you face the greatest risk of extinction.
in trading also we usually confuse RM with MM and even worse stop loss.
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