Risk Management (Insurance Strategies) Risk is an inherent fact of life. Risk, by definition, means the possibility of multiple outcomes, some of which may not be favorable. Risk management is an area of financial planning that addresses the need to guard against the unexpected. Though hardly the concern of most investors, it is a fundamental part of financial planning.At MarsJewett, risk management is a component of every well crafted financial plan. The death or disability of a business owner or a primary wage earner, a long-lasting illness, a lawsuit against your company or professional practice, damage to or loss of real-estate - these are all potential risks that we often address in the planning process.