Risk management is the process of evaluating and, if necessary, controlling the sources of exposure and risk.

Risk can be defined as the likelihood that something undesirable will happen in a given time period and can affect many different aspects of life: safety, human health, finances, occupational health, environmental health, and the welfare of the public. Risk management consists of a risk assessment, prevention and emergency response plan, and an indication of the industry's compliance with current regulations. A risk assessment has four steps: hazard identification, a dose-response assessment, an exposure assessment, and risk characterization. Hazard identification utilizes comparisons of molecular structures, short-term studies, animal bio-esay data, and epidemiological studies to identify the potential hazard being assessed. A dose-response assessment describes how the amount of exposure affects the individual or habitat being studied. Exposure assessments combine the basic principles of epidemiology and occupational exposure. Risk characterization requires no further scientific knowledge, is primarily based on the judgments of the assessors, and estimates the magnitude of the public health problem.
After the risk assessment is complete, it's crucial for those involved to develop a prevention and emergency response plan, which help to limit the amount of the agent produced and what to do if there is a spill, leak, or accidental exposure over the safe limit (as defined by regulations). The plan must also clearly indicate whether or not the company is in compliance with current regulations for the agent they are producing. A risk management plan helps to ensure the safety of workers, the public, and the environment as a whole. It can also be used as a business model to make a company more efficient in how they handle their products and by-products in relation to the environment and regulations. Having a plan in place for employees to follow boosts morale as their efforts have a positive and lasting effect on the environment. Additionally, the money saved by enhancing compliance can be used as incentives to encourage continual adherence. As a business model, an RMP needs to identify the objectives of the company and their resources, assess their risks, and alternatives to their current production plans to reduce or avoid the risk(s). It must also prioritize their opportunities and risks, implement their plans, and finally, allow the company to review their results. A risk management plan must be submitted to the EPA if a company is handling, producing, processing, distributing, or storing certain chemicals, according to the Clean Air Act. All-in-all, risk management benefits industry, workers, the public, and the environment and is more than worth the time and financial investment.