Risk Management:

  Dynamic or "business" risks are those which hold a prospect of profit OR loss.  The efficient and successful management of dynamic risk is the responsibility of the business person.
  Static risk holds ONLY the potential for loss to business assets or income.
  Risk Management, as the name would imply, is the application of sound management techniques. to the handling of static risk exposures.  This process includes all of the following considerations:
  →  Risk Identification
  →  Risk Assumption
  →  Risk Reduction
  →  Risk Avoidance
  →  Risk Transfer - to others by contract or to insurers