The focus of this chapter is on risk and risk management. The following chapters discuss insurance as one of the methods to deal with risk, specifically in the area of automobiles. It is important that students recognize that risk exists in their daily life, and it is how they deal with or treat those risks that determines whether or not they will face financial ruin. The material in this chapter may be difficult for the student to understand. Be prepared to spend some time giving additional examples or having the students do additional study on risk management terms.