Frequently Asked Questions
What Is Risk Management?
Risk management is a process that analizes potential for loss and protects
the organization's assets: real & personal property, financial, and human.
As with most business management decisions the selection of the technique
must consider the costs involved.
For each risk that is identified at least one loss control techinque
and one risk financing technique should be applied.
Loss control techniques include risk avoidance, preventing losses,
segregating exposures to loss to control the impact on the entire
organization, and controlling costs after a loss occurs.
The organization must also choose how it will pay for losses. Common
funding options include self-funding sometimes referred to as self-insurance,
risk transfer, alternative risk financing through the use of captive insurers
or pooling, or purchasing insurance.
