Risk management is deciding what type of insurance or other precautions need to be implemented to decrease a business's exposure to loss.

Question

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Risk management involves identifying and assessing potential risks to a business and taking necessary steps to mitigate or prevent them. Insurance is one tool that can be used to transfer some of the risks to an insurance company. Therefore, risk management does involve deciding on what type of insurance or other precautions need to be implemented to decrease a business's exposure to loss.

Risk Management Is Deciding What Type of Insurance or Other