|
RISK MANAGEMENT
Risk management
is important irrespective of company size, although it can be a very
complicated problem area in large and medium sized companies.
Risk can cost million of dollars, even
in term of insurance premiums. Total cost, includes loss prevention,
self retained losses (uninsurance risk), and the administrative expenses
of insurance and loss prevention.
A comprehensive approach towards
Risk Management is very important. Risk that a company can and is prepared
to bear itself must be identified. Some degree of self insurance is
worthwhile for companies with a high risk- retaining capacity. Risk
that exceed corporate retention must also be identified and can also
be transferred to an insurance company.
|
