Risk management is the systematic identification, analysis and economic control of the risks whichthreaten the resources or earning powers of an enterprise. This definition has the main important elements. These elements are: (i) identification (ii) analysis (iii) economic control Before we can measure risks, we first have to identify it and before we can know what to do with risk, we must first assess their possible impact on the enterprise. The concept of risk management is broader than insurance. Insurance is an aspect of risk management. It is one of the methods of managing risk. Insurance only deals with insurable risks, that is, the pure risks. If you would remember, we said in an earlier chapter that insurance only deals with pure risks. Risk management on the other hand deals with the pure risks that are not insurable. This means that insurance only deals with the insurable risks, that is, the pure risks, while risk manage