Leadership is referred to the competencies of a manager or senior to influence the subordinates to achieve a goal set by an organization. Effective leadership helps in developing associations between the employees, resolving conflicts between the team members, and ensures that a constructive environment is maintained within the organization. The adoption of the right leadership style helps in mitigating the crisis and risks that are affected by the organization in the competitive markets. It includes the adoption of situational leadership as a situational leader understands the needs of the employees and makes adjustments in his/her management approach to meet the needs of the employees. The situational leader seamlessly switches between different leadership styles to suit the organizational needs and develop trust and confidence among the followers. It encourages the employees to reach the leader and seek guidance regarding the resolution of difficult situations like risk and reduce it considerably. It helps the team to make the rightful decision and mitigate the risk or crisis.