RAW
Unlike JPEG and TIFF, RAW is not an abbreviation but literally means "raw" as in "unprocessed". A RAW file contains the original image information as it comes off the sensor before in-camera processing so you can do that processing afterwards.In addition, many of the camera settings which were applied to the raw data can be undone when using the RAW processing software. For instance, sharpening, white balance, levels and color adjustments can be undone and recalculated based on the raw data. Also, because RAW has 12 bits of available data, you are able to extract shadow and highlight detail which would have been lost in the 8 bits/channel JPEG or TIFF format. Raw isn’t one single thing. Rather, it’s a general term for a variety of proprietary file formats—such as Canon’s .CRW and .CR2, Minolta’s .MRW, Olympus’ .ORF, and the various flavors of Nikon’s .NEF, for example—that share important common features. To understand the nature of digital raw captures, you first need to know a bit about how those cameras that shoot raw actually capture images.


WHITE BALANCE:
GLOBAL CORRECTION TO SPECIFIC





It is best to correct for white balance problems at your first.Exposure adjusts the overall image brightness, with a greater effect in the high values. Decrease Exposure to darken the image; increase Exposure to brighten the image. The values are in increments equivalent to f‑stops. An adjustment of +1.50 is similar to widening the aperture 1‑1/2 stops. Similarly, an adjustment of ‑1.50 is similar to reducing the aperture 1‑1/2 stops. (Use Recovery to bring highlight values down.)

Recovery
Attempts to recover details from highlights. Camera Raw can reconstruct some details from areas in which one or two color channels are clipped to white.
Fill Light
Attempts to recover details from shadows, without brightening blacks. Camera Raw can reconstruct some details from areas in which one or two color channels are clipped to black. Using Fill Light is similar to using the shadows portion of the Photoshop Shadow/Highlight filter or the After Effects Shadow/Highlight effect.
Blacks
Specifies which input levels are mapped to black in the final image. Increasing Blacks expands the areas that are mapped to black. This sometimes creates the impression of increased contrast in the image. The greatest change is in the shadows, with much less change in the midtones and highlights. Using the Blacks slider is similar to using the black point slider for input levels when using the Photoshop Levels command or the After Effects Levels effect.
Brightness
Adjusts the brightness or darkness of the image, much as the Exposure property does. However, instead of clipping the image in the highlights or shadows, Brightness compresses the highlights and expands the shadows when you move the slider to the right. Often, the best way to use this control is to set the overall tonal scale by first setting Exposure, Recovery, and Blacks; then set Brightness. Large Brightness adjustments can affect shadow or highlight clipping, so you may want to readjust the Exposure, Recovery, or Blacks property after adjusting Brightness.
Contrast
Increases or decreases image contrast, mainly affecting midtones. When you increase contrast, the middle-to-dark image areas become darker, and the middle-to-light image areas become lighter. Generally, you use the Contrast property to adjust the contrast of the midtones after setting the Exposure, Blacks, and Brightness values.
Source: Adobe Resource Center