Even if it has deeper foundations, risk management, as it is practiced today, is essentially a post-1960s phenomenon.

The predecessor function of risk management is insurance buying; although insurance is still widely used, larger organisations have reduced their reliance on more conventional arrangements as managers discovered that insurance did not meet all organisational needs or that internal activities could control the impact of risk and uncertainty on the organisation.

Technical and financial sides of risk management have gradually been integrated under the same independent function; most medium-size and large organisations have now adopted risk management practices because of their benefits and/or legislation compliance.