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Risk Management

Risk management is a scientific approach to the problem of dealing with the pure risks faced by individuals and businesses.

It is broader than "insurance management" in that it deals with both insurable and uninsurable risks and the choice of the appropriate techniques for dealing with them.

It is important to use a set process for risk management as it will reduce the likelihood of being sidetracked and missing important points. The risk management "process" can usually be broken down into several steps as follows:

  • Determination of objectives
  • Identification of the risks
  • Evaluation of the risks
  • Implementation of the decision
  • Evaluation and review for any needed changes