MANAGEMENT

Detailed explanation-1: -Traditional risk management, sometimes called “insurance risk management, ” has focused on “pure risks” (i.e., possible loss by fortuitous or accidental means) but not business risks (i.e., those that may present the possibility of loss or gain).

Detailed explanation-2: -Risk management is a broad topic. It involves taking steps to minimize the likelihood of things going wrong, a concept known as loss control. It also involves the purchasing of insurance to reduce the financial impact of adverse events on a company when, despite your best efforts, bad things happen.

Detailed explanation-3: -Risk management is the continuing process to identify, analyze, evaluate, and treat loss exposures and monitor risk control and financial resources to mitigate the adverse effects of loss. Loss may result from the following: financial risks such as cost of claims and liability judgments.

Detailed explanation-4: -Insurance pays for the damages if the risk were to occur. Risk management provides a clear and structured approach to identifying risks.