This chapter presents the foundational concepts of risk that all individuals should be familiar with, underscoring the importance of developing a comprehensive understanding of these concepts. It outlines the basic approaches to risk management, including loss control, loss financing, and internal risk-reduction mechanisms. The discussion subsequently focuses on internal and external risk management techniques as they apply to both enterprises and households. Furthermore, the chapter differentiates between direct and indirect losses, providing illustrative examples and emphasising the necessity of considering indirect losses whenever a loss event occurs. The chapter concludes by proposing a range of risk-mitigation strategies relevant to individuals and organisations.