A risk is a chance of something going wrong or something that cause threat to an organization or an establishment. The process of risk management refers to the use of financial measuring techniques to determine the cumulative risk in a financial assortment. Financial institutions or individuals are always exposed to different types of risks in their operating environments. Some risks are usually unavoidable whereas some cannot. Risk modeling therefore presents a way of measuring and determining their overall effect. Risk modeling takes into account all the variables which are involved when covering a risk.