Risk is one of the inherent treats of business operations which result into variation in actual outcome as compared expected outcome. This is due to unanticipated events happens at present and future. If actual outcome is favorable to business operation, it is called as positive risk, in contrast, actual outcome is unfavorable we say it as negative risk. Business operations are exposed to dynamic environment which undergo into modifications time to time. This ever changing character of business environment increases risk exposing level of business operations. Therefore, business entities focus on formulation of risk management strategies to reduce or avoid the negative impact of risk on business operations. Present modern competitive business word (Characterized by globalization, liberalization and privatization) has increased risk level of business operation to peak level, this calls for urgency of innovative risk management strategies for entire corporate world both at national and international level. However, a risk to which a particular industry is exposed arises due to unanticipated changes in both controllable (micro) and uncontrollable variables (macro) of that particular industry. Corporate entities risk mitigating strategies are focused on avoiding impact of risk arise due to changes in controllable factor either by cancellation of operation or post postponement to some other date. On the other hand, corporate entities are emphasized on strategies to mitigate risk arises to due to changes in uncontrollable factor by hedging tools. However, types and nature of risks are not similar to all industries, there are vary from one industry to another and one entity to another on the basis of variation in nature of operations and size of organization. Risk management process consists of identification of risks, finding sources of risk, measurement and management of risk through appropriate techniques. The study revelated that Cement industry in India is exposed to variety of risks such as economic, operating with over capacity, competition risk, commodity, regulatory, legal and environmental risk and financial risks. Some of these risks are controllable and other are uncontrollable. Management of Financial risk is a challenging task to policy makers. Financial risks of cement industry are in form of market risk, credit risk and liquidity risk. Sensitive analysis is wide and commonly used technique to measure the different types of financial risks along with specific techniques such as cash flow forecasting, interest rate movements and commodity price tracking.