Risk is the situation involving exposure to possibility, probability and chance. Risk management plan is the forecasting and evaluation of financial risk along with the identification of procedures to avoid. The investors make this plan before investing their capital keeping in view the record of entity. This plan is made for avoiding the adverse effects of loss and to indentify and evaluate the lose exposures. The risk is of following types it can be financial, operational, perimeter and strategic. The loss exposure includes property, liability, net income and personnel. The risk can be controlled by avoiding activities which causes loss and contractual transfer of responsibility for loss occurrence. Risk, management is concerned with all loss exposures not only for insurance claims. The owner follows this plan for securing their transportation facility by signing contract with insurance companies.

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