There are five key principles of risk management: risk identification, risk analysis, risk control, risk financing, and claims management. Let's look at each one in more detail. Risk identification – This is the process of identifying potential risks to an organization.

Risk management is the continuing process to identify, analyze, evaluate, and treat loss exposures and monitor risk control and financial resources to mitigate the adverse effects of loss. Loss may result from the following: financial risks such as cost of claims and liability judgments.

Insurance is an investment in the stability and future growth of a new business. It plays a pivotal role in a comprehensive risk management strategy, providing financial protection, liability management, and support for business continuity.