One of my teachers, long back, explained in a nutshell, the concept of Risk Management, which I think he read somewhere.
IDENTIFICATION OF RISK
If I take my girlfriend out to a nightclub, my wife may find out about it.
MEASUREMENT OF RISK
If she does find out, she may leave me and file for divorce.
HANDLING OF RISK
Therefore, I can either say to my girlfriend:
“Put on your dancing shoes and we’ll go to the nightclub.”
“We’d better sit at home in your apartment and watch TV.”
That, in brief, is RISK MANAGEMENT - How to Identify, Measure and Handle Risk.