The basic concept of Risk Management is to protect the company’s assets from loss. The basic tenets of Risk Management are:

1.    Don’t retain more risk than you can afford to lose

2.    Don’t risk a lot for a little

3.    Always consider the odds, and

4.    Don’t treat insurance as a substitute for loss control

This is accomplished by following the five basic steps in the Risk Management Process which are: 1) Risk Identification, 2) Risk Analysis, 3) Risk Control, 4) Risk Financing, and 5) Risk Administration.