"Attitude is a little thing that makes a big difference." [Winston Churchill]
Risk management is the process of analyzing exposure to risk and deciding how to handle such exposure efficiently.
To analyze exposure to risk you often have to simulate business. You will calculate how your profits & losses could develop in general and what the best or worst performance could be.
A good site to look for up-to-date information is www.wilmott.com, I think.
Nassim Nicolas Taleb wrote some very interesting and valuable books on this subject: Dynamic Hedging - Managing Vanilla and Exotic Options Fooled by Randomness - The Hidden Role of Chance in Life and in the Markets The Black Swan - The Impact of the Highly Improbable
Monte Carlo Simulations are used frequently to simulate business or market developments. One of the best books on this topic is Peter Jaeckels “Monte Carlo Methods in Fincance”.