File management refers to the system an operating system uses to organize and track files. It involves assigning descriptive names to files, storing metadata like modification times, and organizing files into a hierarchical structure using directories. Good file management is essential, especially for multimedia projects, as it prevents files from becoming lost or unlinked if moved. The most important rules of file management are to give files descriptive names without special characters, create a master folder for each project and subfolders as needed, and avoid cluttering the desktop with unimportant files.