Meaning of Risk Management Risk Management is a process that identifies loss exposures faced by an organization and selects the most appropriate techniques Tor treating such exposures A loss exposure is any situation or circumstance in which a loss is possible, regardless of whether a loss occurs E.g., a manufacturing plant that may be damaged by an earthquake or an automobile that may be damaged in a collision 3-23-2 Meaning of Risk Management • Risk Management is a process that identifies loss exposures faced by an organization and selects the most appropriate techniques for treating such exposures • A loss exposure is any situation or circumstance in which a loss is possible, regardless of whether a loss occurs – E.g., a manufacturing plant that may be damaged by an earthquake, or an automobile that may be damaged in a collision