This book provides a much needed theoritical basis for the subject of risk management. Rtaher than concentrating on a description of the management process, it presents a consistent decision framework for risk management choices. The author's approach is to apply the criteria for financial decision making - criteria that are used in practice and taught extensively in college finance courses - to issues in risk management. Besides giving risk management a theoritical and quantitative foundation, this approach integrates with, and builds upon, other business areas, enabling readers to use their understanding of economic, finance, and statistics.