Effective Risk Management
Article Abstract:
Risk management is assuring sufficient coverage in the event of any circumstance cost effectively so that the corporation would not suffer financial loss. The first step is to recognize risks, as well as the amount of exposure for a particular company. This step can be met by checklists, physical inspections, interviews, financial statement review, contract review and records of past losses review. Next, risk managers need to decide how to handle these risks as well as protect against truly catastrophic losses. Though insurance is a valid method of handling risks, others include risk avoidance, risk elmination, risk reduction, as well as noninsurance risk transfer and risk assumption. Prevention is the key to risk elimination and reduction. Risk assumption involves a company actively or passively deciding to pay for losses in a particular risk category. Risk transfers can be dealt with through agreements with suppliers, lessees, customers who assume the risk. Insurance should be the last alternative. Risk funding involves a financial analysis of all of these alternatives much the way an insurance company analyzes a particular business. To insure more efficiently, a company should determine normal loss and the company's ability and manner of paying for losses. Then a company should evaluate its alternatives and manage them accordingly. Methods for determining loss retention and normal loss are discussed with an example.
Publication Name: CA Magazine
Subject: Business
ISSN: 0317-6878
Year: 1984
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Risk: identify, assess, act
Article Abstract:
Definitions of business risk and methods of managing risk in a no-for-profit organisation are presented. Steps in the process of identifying, assessing, ranking and managing the range of internal and external risks are given.
Publication Name: CA Magazine
Subject: Business
ISSN: 0317-6878
Year: 2000
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Risk: liability or opportunity?
Article Abstract:
Issues are presented concerning the pursuit of opportunity in business while at the same time exerting enough control to mitigate risk. The work of the organisation CoCo in the promotion of control is discussed.
Publication Name: CA Magazine
Subject: Business
ISSN: 0317-6878
Year: 2000
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