Nonprofit Manual - Risk and Insurance Risk and Insurance Provided by the North Dakota Department of Insurance Risk is generally defined as the chance of loss.
Insurance is just one method used to manage risk.
For the cost of a premium the person or entity can transfer risk to an insurance company. The following list identifies some general areas of risk exposure and the type of insurance mechanism applicable to that type of risk. The purpose is to provide you with a general summary. There is no attempt to provide an all inclusive list, as it is not within the scope of this article. Please consider this just a starting point as there likely are other areas of exposure to evaluate.