Risk is the possibility of loss to scarce resources. Risk management, is the practice of appraising and controlling risk, and has evolved as a discrete field of study and practice, primarily in the area of four risk management techniques. These are risk avoidance, risk prevention, risk retention, and risk transfer, the latter of which is also known as insurance. Thus, in law and economics, insurance is a risk management technique primarily used to hedge against the risk of a contingent, uncertain loss that may be suffered by those individuals or entities who have an insurable interest in scarce resources, by transferring the possibility of this