This text deals with risk and its treatment. Since the last edition of Principles of Risk Management and Insurance appeared， several unprecedented events have occurred that clearly demonstrate the destructive presence of risk in our society. In 2010， one of the most devastating earthquakes in recent history struck poverty-stricken Haiti， causing enormous human suffering， an estimated 316，000 deaths， one million homeless people， and widespread property destruction. In 2011， a deadly earthquake hit Japan that caused a devastating tsunami and a nuclear accident crisis. More than 18，000 people died， thousands more are missing， and estimated property damage may exceed $300 billion. During the same period， the Obama Administration introduced legislation to reform a broken health-care delivery system. Despite formidable opposition by the Republicans， and heated and bitter debate， Congress enacted the Affordable Care Act in March 2010. The new law extends health insurance coverage to millions of uninsured people， provides subsidies to purchase insurance， and prohibits certain abusive practices by insurers.

　　Finally， in 2012， a deranged gunman randomly killed 12 people and wounded at least 58 others in a theater in Aurora， Colorado. This tragic act again highlights the fact that spree killings are not isolated events， and that the risk of death or injury is markedly present. Flash forward to the present. The economy and housing markets are slowly recovering from the second most severe economic downswing in the nation's history; although declining， unemployment remains at historically high levels; and a dysfunctional Congress remains hopelessly deadlocked because of deeply held ideological beliefs by its members. The Affordable Care Act remains controversial， and Republicans in Congress are determined to repeal it. The House has already enacted legislation to repeal the Affordable Care Act. To say that we live in a risky and dangerous world is an enormous understatement. The twelfth edition of Principles of Risk Management and Insurance discusses these issues and other insurance issues as well. As in previous editions， the text is designed for a beginning undergraduate course in risk management and insurance with no prerequisites. The twelfth edition provides an in-depth treatment of major risk management and insurance topics. Coverage includes a discussion of basic concepts of risk and insurance， introductory and advanced topics in risk management， functional and financial operations of insurers， legal principles， life and health insurance， property and liability insurance， employee benefits， and social insurance. In addition， the new Affordable Care Act is discussed in depth. Once again， the twelfth edition places primary emphasis on insurance consumers and blends basic risk management and insurance principles with consumer considerations. With this user-friendly text， students can apply basic concepts immediately to their own personal risk management and insurance programs.