Biz Brains Systems
Biz Brains Systems
Your virtual CEO and CFO

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


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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