The objective of risk management is the reduction of the adverse effects of risks at a minimum cost through their identification, measurement, and control. The combination of protection and cost chosen should be based on the best data available and designed for a school's unique need. Risk management involves (1) discovery or identification, (2) measuring possible losses, (3) choosing the best alternative solution to the problem, and (4) implementing the decision. Alternative solutions usually involve risk avoidance or risk retention. Risk of large losses may be insured. (Author/JF)