This paper aims to show the relationship between the use of demand management and demand forecasting by companies and decreased risks that businesses face in their operation. The purpose of the research is to find relevant factual data that such a relationship exists through an analysis of relevant information on the concepts of demand, risks that companies face, and demand management and forecasting. It was found in this paper that demand management and forecasting are effective means for the purposes of decreasing and eliminating risks in the companies’ operation, especially those related to resource distribution and orders processing. Therefore, the principles of demand management and demand forecasting should be actively used by businesses to achieve greater efficiency, decrease expenses, and increase revenues.
