Risk Management We are surrounded by risks. We take risks when we travel, when. We engage in recreational activities, even when we breathe. Some risks are significant;   others are not. when we decide to leave an umbrella at home, we take the risk that we might get wet in a rain shower. Such a risk is insignificant. But what about the risks in the following situations? In each situation, the individual, family, or business can use risk management to control the level of financial risk it faces. Risk management involves identifying and assessing the financial risks we face. In order to eliminate or reduce our exposure to specific financial risk, we can choose any of at least four options (1) avoid the risk, (2)control the risk, (3)accept the risk, and (4) transfer the risk. Avoiding risk The first, and perhaps most obvious, method of managing risk is simply to avoid risk altogether. We can avoid the risk of personal injury that may result from an airplane crash by not riding in an airplane, and we can avoid the risk of financial loss in the stock market by not investing in it. Sometimes, however, avoiding risk is not effective or practical..

engage v. 参加某事或从事某事。

 recreational  adj. 消遣的，娱乐的。

 insignificant  adj. 无足轻重的，无价值的。

sufficient adj. 足够的，

identify v. 确认，证明。

assess v. 确定，评估。

eliminate v. 消除，排除