This booklet, intended for trustees of institutions of higher education, offers some instruction on the principles of risk management. Introductory information provides a definition of risk management, which is seen as a planning and strategic function, not solely as a financial or safety assessment. Individual sections then address the following topics: (1) an institution's critical areas of risk exposure (noting four levels of governing board involvement); (2) the realities of risk (noting traditional operational risk, legal and regulatory risk, financial risk, and political and reputational risks); (3) basic methods of risk management (avoidance, control, transfer, acceptance); (4) organizational structures for risk management; (5) risk management tools; (6) the board's role; and (7) the cost of risk management. Each section also provides questions to consider in applying principles to a specific institution. A suggested format for a management report to trustees concerning institutional risk management is also provided. (DB)