Investment Risk Management is the process of identifying possible risks in the investment and analysing them well in advance and to take necessary steps to prevent them. In case of businesses when they make financial investments, they do risk management so efficiently, so that they can identify the potential economic risks, their impacts and ways to overcome them. Risk management takes place when an investor or fund manager quantifies of the potential losses and takes necessary actions to tackle the risk involved in the investment. The purpose of this paper is (i) To study the various steps involved in the process of investment risk management. (ii) To understand the importance of investment risk management. (iii) To identify the principles that guides the investment risk management and (iv) To know the different ways and strategies to manage the risk. Financial Risk Management controls the entire investment game. This paper provides a starting point for investors or fund managers to establish their own risk management strategies. Investment Risk Management teaches how to make more by risking less. Investment risk management is the secret behind safe and consistent profits making in any market condition.