Conserving the firm's earning power and assets by reducing the threat of losses due to uncontrollable events is ________ management.

Question

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Risk management involves identifying and assessing potential risks to a company's operations and implementing strategies to mitigate or manage those risks, such as through insurance or contingency planning. This helps to protect the firm's assets and earnings power by reducing the threat of losses due to uncontrollable events. While financial management and insurance are related areas, they focus more on managing the firm's financial resources and protecting against specific types of risks (such as those related to health, liability or property damage), respectively. Disaster and contingency management may also have some overlap with risk management, but tend to focus more on specific types of events (such as natural disasters or unexpected business disruptions) and the actions needed to respond to those events.

Conserving the Firm's Earning Power and Assets by Reducing the Threat