Risk Management. What is risk? What is risk management? How does insurance fit into risk management? Risk is: (Select the best answer below.) OA. exposure to events that can cause a financial loss. B. the acceptance of a financial loss. C. the avoidance of a financial loss. D. the value of a financial loss. The first step in risk management is to: (Select the best answer below.) OA. identify who to buy insurance from. B. select the type of insurance you need. C. recognize the risks to which you are exposed. OD. decide whether to protect against risk. You should consider insurance if: (Select the best answer below.) O A. you cannot avoid the risk. B. you cannot reduce the risk. C. you do not wish to be exposed to a financial loss as a result of the risk. OD. All of the above