Resources on Risks

Businesses are prone to all kinds of risks. The Small business failure rate is relatively higher. There was a study by National Federation of Independent Businesses (NFIB)where they found that 35% of businesses fail within 2 years, 54% fall within 4 years and 64% of new businesses fail within 6 years. 

Following are the examples of Risks

Types of Business Risks

Risk Management

Business Risks management

Insurance

Wikipedia defines Insurance is a means of protection from financial loss. It is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss. 


Following are different kinds of insurance which a business can opt for

  • Group Health
  • Workmen Compensation
  • Fire
  • Directors and Officers Liability
  • Marine
  • Term life and Keymen
  • Doctors and Professional Indemnity
  • Commercial General Liability
  • Engineering All Risks

Following are considered to be best insurance companies in the world:


1) AXA

2) Zurich Insurance Group

3) Berkshire Hathaway

4) Prudential Plc

5) Munich Re Group

Risk Management Process

Establishing Context: This includes an understanding of the current conditions in which the organization operates on an internal, external and risk management context. 


Identifying Risks: This includes the documentation of the material threats to the organization's achievement of its objectives and the representation of areas that the organization may exploit for competitive advantage. 


Analysing/Quantifying Risks: This includes the calibration and, if possible, creation of probability distributions of outcomes for each material risk. 


Integrating Risks: This includes the aggregation of all risk distributions, reflecting correlations and portfolio effects, and the formulation of the results in terms of impact on the organization's key performance metrics.


Assessing/Prioritizing Risks: This includes the determination of the contribution of each risk to the aggregate risk profile, and appropriate prioritization 

Treating/Exploiting Risks: This includes the developm strategies for controlling and exploiting the various risks. 

Monitoring and Reviewing: This includes the continual measurement and monitoring of the risk environment and the performance of the risk management strategies.
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