Risk management is the name for the things we do to minimize the probability of anyone being harmed while on our property or as a result of our actions, and also, the things we do to minimize the probability of damage to physical property.

The first step is to identify the risks, although that is an on-going process. Secondly, policies, procedures, and rules need to be developed and written, some of which may be as simple as "Do's and Don'ts." Thirdly, employees must be instructed and supervised. Risk management incorporates administrative procedures that could cause harm if improperly administered. It includes safety procedures and crime prevention procedures. It includes proper screening of new tenants and prompt eviction of tenants who violate lease agreements or who are convicted of a crime. Doing these things properly helps moderate the amount of money the management company and investors must invest in insurance premiums, and that is one of the purposes of risk management.