Risk is everywhere, and it is clear that any company will face risk-related problems. These risks lead to serious losses for companies in unexpected situations. There exists a common misconception about risk management: the goal of risk management is to completely eliminate risk in a business. This is not actually true since it is almost impossible to eliminate risk. Instead, the goal of risk management is primarily to ensure that each company has a clear idea of the level of risk it is willing to take, and to implement practical measures to manage the impact of risk through analysis. In the case study of Polaroid, there are different approaches to analysing the impact of risk management, and these approaches have revealed different reasons for Polaroid's bankruptcy.