Our philosophy regarding both insurance management and risk management is basically the same. First we identify the exposures in each risk, determine the nature and extent of the exposures. Secondly, we explore methods to eliminate, prevent or minimize possible losses to the firm. Third, discuss the feasibility of absorbing losses (in the form of large deductibles) which may occur by paying them out of current income or a fund established for that purpose. Lastly an insurance program would be designed to cover those risks which can not be eliminated or are too large to absorb.