Risk Management involves the development and implementation of strategies to mitigate or manage risk. The assessment of risks results in a quantitative or qualitative valuation of risks from a facility, site, operation or other undertaking. If risks are not acceptable to governments, owners or other stakeholders, plans are developed for options to reduce or manage risks.

Risk management alternatives are assessed for effectiveness in reducing risks, relative costs and benefits (e.g. risk reduction per dollar spent), uncertainty, technical feasibility, acceptability and socio-economic factors.

Depending on the nature of the facility, site, operation, or risks or the magnitude of risks, a great many different types of risk management plans may be developed. These may range from paving or covering contaminated soils to excavation and full scale site clean-up or years of on-going site maintenance. In many instances, costs of full scale clean-up are prohibitive or technologies to accomplish such a clean-up have not been demonstrated effective. Often more practical and equally effective (or even more effective) risk management measures can be undertaken.

The cost/benefit approach to the selection of risk management alternatives can be used at a site or for comparison across many sites on a priority basis, to target spending and thus achieve the greatest reduction of risk in a cost effective manner and also assuring the greatest avoidance of undue risks.