Abstract
The theory and practice of risk management has expanded in recent years, and now includes measures to assess and address almost all risks that local governments encounter. This new view of risk management places great emphasis on the proper formation and effective management of contracts, as contracting proves to be a major source of risk. This article examines contracts and risks related to outsourcing claims management services, and in doing so draws some provisional observations about all contracting and outsourcing--and the risk management issues arising from both practices.