Risk Management Strategies

 Risk Avoidance
 Risk Reduction
 Risk Retention
 Risk Combination
 Risk Transfer
 Risk Sharing
 At a Glance…….
 Risk
 Peril
 Hazard
 Types of Risk
 Subject Matter of Insurance
 Loss Frequency and Loss Severity
 Risk Management…
Why?....When?...How?
 At a Glance…….
 Risk Management Strategies:
Risk Control
Risk Financing
 Hazard
 Physical Hazard

 Moral Hazard

 Morale Hazard
 Types Pure Risk
 Personal Risk

 Property Risk

 Liability Risk
 Risk Management
 Corporate Risk Management
Process

 Personal Risk Management

Process
 Corporate Risk Management
Process
 Identifying Potential Losses
 Evaluating Potential Losses
 Selecting The Appropriate
Technique for Handling Losses
 Implement and Review the
program Periodically
 Identifying Potential Losses
 Property Loss Exposures
 Liability Loss Exposures
 Business Income Loss Exposures
 Human Resource Loss Exposures
 Crime Loss Exposure
 Employee Loss Exposure
 Foreign Loss Exposures
Evaluating Potential Losses
 Selecting The Appropriate
Technique for Handling Losses

 Risk Control

 Risk Financing
Captive Insurer
 Personal Risk Management
 Personal

 Property

 Liability
 Implement and Review the
program Periodically
 Risk Management Policy Statement

 Implementation by coordinating various

depts.:
Accounts
Finance
Production
Marketing
Human Resource
 Personal Risk Management
 Personal Risks

 Property Risks

 Liability Risks
Legal Principles of Insurance
 General Principles
 Specific Principles
 Miscellaneous Principles
 General Principles
 Offer and Acceptance
 Legal Consideration
 Competent to make Contract
 Free Consent
 Legal Object
Specific Principles of Insurance
 Principle of indemnity
 Principle of Insurable Interest
 Principle of Subrogation
 Principle of Utmost good faith
(Uberrima Fides)
Representations, Concealment,
Warranty
 Principle of Proximate cause
 MISCELLANEOUS PRINCIPLES
 Principle of Contribution
 Principle of Assignment
 For Life Insurance
Indemnity not Applied
Conditional Contract
Contract of Adhesion (non
negotiable)
Unilateral in Nature
 Risk & Insurance

 Insurance Defined

 Insurance Vs Gambling

 Insurance Vs Hedging
Benefits of Insurance To Society
 Indemnification of Loss
 Less Worry and Fear
 Sources of Investment Funds
 Enhancement of Credit
 Loss Prevention
Cost of Insurance to
Society
 Requirements of an Insurable
Risk
 Large Number
 Accident and Unintentional
 Non Catastrophic loss
 Calculable Chance of Loss
 Economically Feasible Premium
 Application

Risk of Fire as
Insurable
Risk