The `ROUND` function in SQL is a built-in function used to round a numeric value to a specified number of decimal places. It's a common operation in data manipulation and reporting, allowing you to format numbers for display or further calculations. The function takes two arguments: the number to be rounded and the number of decimal places to round to. If the second argument is omitted, it defaults to 0, rounding to the nearest whole number. This function is crucial for ensuring data consistency and accuracy in reporting and analysis. For example, if you need to display prices rounded to two decimal places, or if you need to calculate averages with rounded values, the `ROUND` function is essential. It's important to understand the rounding rules, which are typically based on the standard mathematical rounding rules.