Risk Management is one of the specialties in the field of management. By definition, risk management is a process that involves making and implementing decisions that will minimize the adverse effects of accidental losses upon an organization. Making these decisions involves a five-step decision process:
(1) identifying loss exposures;
(2) examining alternative risk management techniques;
(3) selecting the best risk management technique(s);
(4) implementing the chosen risk management technique(s); and
(5) monitoring the results to ensure the risk management program remains effective.