Idea & Concept of Risk-Management:-
The pursuit of safety & security is a fundamental aspect of human history. Man has always endeavored and adopted safety measures to eliminate, avoid accidents & minimize impacts of accidents, therefore handling of risk (risk-management) is as old as human life. Precisely we may define risk-management is a process to explore solutions to deal with accidents. It is a continuous process and inducts safety in our daily life activities. In fact, it has become essential for ensuring safety & sustainability for any organization.
Insurance Risk Management.
Insurance Risk Management also aims to explore solutions to minimize loss exposures which may generate accidents in work place. These solutions tends to reduce/minimize frequency as well as severity of accidents which may lead to material damage & financial losses.
Insurance Risk-Management solutions ensure safety, sustainability and efficiency by mitigating hazards & risks in an organization. In other words, it reduces and/or prevent accidents and also minimize severity of loss/damage.
One must understand Insurance Risk Management is a continuous process and requires regular monitoring to get desired results.
Insurance Risk Management Involves:-
1) Detect & diagnose loss exposures & hazards.
2) Analyze frequency & severity of all loss exposures.
3) Explore possible solutions to eliminate or reduce loss exposures.
4) Design appropriate program based on above solutions.
5) Implement insurance risk management program.
6) Monitor results for at least 12-24 months.
