This error occurred when I tried to run a program using Java Virtual Machine Launcher.
As a temporary fix what I did was searching for the file jvm.cfg (which was found somewhere under JDK_HOME) and made the file available in the path mentioned in the error message.
The following is the content of the file jvm.cfg
-client KNOWN -server KNOWN -hotspot ALIASED_TO -client -classic WARN -native ERROR -green ERROR
The permanent solution to this error is adding the path JDK_HOME\jre\bin (C:\Java\jdk1.7.0\jre\bin; - in my case) to the System Environment Variable- Path