Risk Management Services
Oxford Dictionary defines the term risk as a “chance or possibility of danger, loss, injury or other adverse consequences”. Definition of risk as per International organization for standardization (ISO) Guide 73:2009, definition 1.1, “effect of uncertainty on objective; whether positive or negative”.
Risk is an integral part of our life and business. Both in our life & business, without risk there is no oppurtunity for rewards or returns. But, during productive years of your life & Business, your income or your profit is at risk, your personal as well as business properties are at risk, you may attract liabilities due to your action or inaction in your business or personal life, your family's or personnel's health is at risk.
Risk Management is the identification, assessment, and prioritization of followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities.
What to do with risk in our life as well as business? One can look at 4T's of risk
- Terminate/avoid risk - Avoid such activities in life or business to stay clear of RIsks.
- Tolerate/retain risk - Risk which can't be terminated can be tolerated or ignored if the loss associated with the risk is very low or the can be retained if the reward of taking the risk is high. The act of doing Business is by itself retaining 'good' risk & getting rewarded (ROI) for the same.
- Treate it, take corrective measure so that the effect of the risk is minimised.
- Transfer it. some risky processes can be transferred to third party under contract minimising exposure or can be transferred to Insurers against a premium.
Having said that it is imperative that the cost of risk mitigation or transfer should be less than the consequence of inaction, in other words "gain should be in excess of the pain". After all effort of risk mitigation are carried out some risks remain which are either know but out of control or not yet know, these risk are called residual risks.
BimaGenieTM Insurance Brokers is one of the leading insurance brokerage in india who are well equiped to design and implement customised risk management solutions/program for individuals as well as enterprises.
