Risk Management
Insurance Risk Management is the assessment and quantification of the likelihood and financial impact of events that may occur in the customer's world that require settlement by the insurer; and the ability to spread the risk of these events occurring across other insurance underwriter's in the market.
Risk management is a crucial part of the insurance industry. It involves identifying, analyzing, and mitigating potential risks that could result in financial losses. Insurance companies are in the business of risk management, and their success depends on their ability to assess and manage risks effectively.
What are the Essential Techniques of Risk Management?
Avoidance.
Retention.
Spreading.
Loss Prevention and Reduction.
Transfer (through Insurance and Contracts)
What is a risk management plan for insurance ?
It involves taking steps to minimize the likelihood of things going wrong, a concept known as loss control. It also involves the purchasing of insurance to reduce the financial impact of adverse events on a company when, despite your best efforts, bad things happen.
