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
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
- Directors and Officers Liability
- 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:
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.