This document discusses managing business risks through understanding risks, managing risk, and obtaining appropriate insurance coverage. It identifies common business risks like hackers, theft, and fraud. It also discusses reducing risk through prevention programs, avoiding risks when possible, self-insuring or buying various types of insurance like general liability, property, health, disability, workers' compensation, and life insurance. The document emphasizes the importance of understanding different types of insurance policies and coverage for risks facing various businesses, including home-based businesses.
Sharing with you my dear readers who may find it useful.
Feel free to connect with me at maxermesilliam@gmail.com.
P/S: taken the insurance exam but has yet to practice as an insurance agent.
The document consists of Module 1 of Paper Insurance and Risk Management
Content
Risk, Peril and Hazard
Types of Risk
Risk Management
Techniques of Risk Management
Classification of Insurance
Principles of Insurance
Indian Contract Act
Bibilography
www.google.com
Notes
Sharing with you my dear readers who may find it useful.
Feel free to connect with me at maxermesilliam@gmail.com.
P/S: taken the insurance exam but has yet to practice as an insurance agent.
The document consists of Module 1 of Paper Insurance and Risk Management
Content
Risk, Peril and Hazard
Types of Risk
Risk Management
Techniques of Risk Management
Classification of Insurance
Principles of Insurance
Indian Contract Act
Bibilography
www.google.com
Notes
Risk management is the process of identifying, assessing and controlling threats to an organization's capital and earnings. These threats, or risks, could stem from a wide variety of sources, including financial uncertainty, legal liabilities, strategic management errors, accidents and natural disasters
Risks which are not capable of avoidance, prevention, reduction to a large extent or assumption may be transferred from one party to the other party. The basic objective of insurance is to transfer the risk of a person to the insurance company which has easily spread it over a large number of persons insuring similar risks. As such, for handling risks which involve large financial losses or which are dangerous, insurance is a means of shifting such risks in consideration of a nominal cost called premium.
Insurance is a means of protection from financial loss. It is a form of risk management primarily used to against the risk of a contingent, uncertain loss.
When market conditions are good insurance companies get low of business and their profits increase but in the adverse market conditions the companies start facing losses or their profitability reaches to rock bottom.
Reinsurance is about transferring the risks of Insurance companies to third party organisations. This presentation focuses on the need, the types and the structures of reinsurance. Along with this, the paper also talks about the market in India.
Risk management is the process of identifying, assessing and controlling threats to an organization's capital and earnings. These threats, or risks, could stem from a wide variety of sources, including financial uncertainty, legal liabilities, strategic management errors, accidents and natural disasters
Risks which are not capable of avoidance, prevention, reduction to a large extent or assumption may be transferred from one party to the other party. The basic objective of insurance is to transfer the risk of a person to the insurance company which has easily spread it over a large number of persons insuring similar risks. As such, for handling risks which involve large financial losses or which are dangerous, insurance is a means of shifting such risks in consideration of a nominal cost called premium.
Insurance is a means of protection from financial loss. It is a form of risk management primarily used to against the risk of a contingent, uncertain loss.
When market conditions are good insurance companies get low of business and their profits increase but in the adverse market conditions the companies start facing losses or their profitability reaches to rock bottom.
Reinsurance is about transferring the risks of Insurance companies to third party organisations. This presentation focuses on the need, the types and the structures of reinsurance. Along with this, the paper also talks about the market in India.
This presentation is all about insurance. It will cover some topics.
1-What is Insurance ?
2-Why Insurance ?
3- Type of Insurance
4-What is Risk?
5- Peril and Hazard
6- Transfer of Risk ?
7- Mitigation
8-WHAT IS GENERAL INSURANCE ?
9- Type Of General Insurance
10- Insurance Company Operations
11- Underwriting, Claims Settlement
12- Reinsurance
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the telegram contact of my personal pi merchant to trade with
@Pi_vendor_247
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
The Evolution of Non-Banking Financial Companies (NBFCs) in India: Challenges...beulahfernandes8
Role in Financial System
NBFCs are critical in bridging the financial inclusion gap.
They provide specialized financial services that cater to segments often neglected by traditional banks.
Economic Impact
NBFCs contribute significantly to India's GDP.
They support sectors like micro, small, and medium enterprises (MSMEs), housing finance, and personal loans.
How to get verified on Coinbase Account?_.docxBuy bitget
t's important to note that buying verified Coinbase accounts is not recommended and may violate Coinbase's terms of service. Instead of searching to "buy verified Coinbase accounts," follow the proper steps to verify your own account to ensure compliance and security.
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
Exploring Abhay Bhutada’s Views After Poonawalla Fincorp’s Collaboration With...beulahfernandes8
The financial landscape in India has witnessed a significant development with the recent collaboration between Poonawalla Fincorp and IndusInd Bank.
The launch of the co-branded credit card, the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card, marks a major milestone for both entities.
This strategic move aims to redefine and elevate the banking experience for customers.
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
3. UNDERSTANDING BUSINESS RISKS
• Hackers and viruses are an increasing threat to computers, and identity theft
is a commonplace.
• Theft and fraud can destroy a business.
• Such reports are so much a part of the news that we tend to accept these
events as part as everyday life. But with the losses of property, equipment,
transportation, and other resources mean a great deal to the people and
origination injured by them.
• In some states, insurance against such loss is not available or is too
expensive for high-risk businesses.
• Executives in Quality Digest found more than 90% were building or want to
build enterprise risk management (ERM) into their organizations.
4. HOW RAPID CHANGE AFFECTS RISK
MANAGEMENT:
• Risk goes beyond the obvious dangers of fire, theft, or accident. It is inherent
in every decision a manager makes, and the prudent company assess its
exposure in all of them.
• Risk managers are expanding their expertise into human resources, IT,
security, legal, site construction, and more.
• Change is occurring so fast that it is difficult to identify new risks until they
are upon us.
6. RISK:
• Is the chance of loss, the degree of probability of loss, and the amount of
possible loss. There are two kinds of risk:
• Speculative Risk- a chance for either profit or loss
• Pure Risk- the threat of loss with no chance of profit
7. THE TYPE OF RISK THAT MOST CONCERNS BUSINESSPEOPLE IS PURE
RISK. IT THREATENS THE VERY EXISTENCE OF SOME FIRMS. ONCE
THEY IDENTIFY PURE RISKS, FIRMS HAVE SEVERAL OPTIONS:
• Reduce the risk.
• Avoid the risk.
• Self-insure against the risk.
• Buy insurance against the risk.
8. REDUCING RISK:
• A firm can reduce risk by establishing loss-prevention programs such as fire
drills, health education, safety inspections, equipment maintenance, accident
prevention programs, and so on.
• Employees as well as managers can reduce risk. The beginning of an
effective risk management strategy is a good loss-prevention program.
However, high insurance rates have forced some firms to go beyond merely
preventing risks to avoiding them, in extreme cases by going out of business.
9. AVOIDING RISK:
• We can't avoid every risk. There is always the chance of fire, theft, accident,
or injury. But some companies are avoiding risk by not accepting hazardous
jobs and by outsourcing shipping and other functions.
• Many companies have cut back on their investments to avoid the risk of
financial losses, especially since the market fall of 2008–2009.
10. SELF- INSURANCE:
-Is the practice of setting aside money to cover routine claims and buying only
“catastrophe” insurance policies to cover big losses.
• One of the riskier self-insurance strategies is for a company to “go
bare,” paying claims from its operating budget instead of from a special
fund. The whole firm could go bankrupt over one claim if the damages
are high enough.
• A less risky alternative is to form group-insurance pools that share
similar risks.
11. BUYING INSURANCE TO COVER RISK:
• Insurance is the armor individuals, businesses, and nonprofit organizations
use to protect themselves from various financial risks. Together they spend
about 10 percent of gross domestic product (GDP) on insurance premiums.
The federal government provides some insurance protection, but individuals
and businesses must cover most on their own.
12. TYPES OF RISKS:
• Uninsurable Risk- is one that no insurance company will cover.
• Market Risk
• Personal Risk
• Political Risk
• Operational Risk
• Insurable Risk- is one the typical insurance company will cover, using the
following guidelines:
• The policyholder must have an insurable interest (The possibility of the
policy holder to suffer loss) which means the policyholder is the one at risk
to suffer a loss. You cannot buy fire insurance on your neighbor's house and
collect if it burns down.
13. INSURABLE RISK (CONT.)
• The loss must be measurable
• The Chance of loss must be measurable
• The loss must be accidental
• The insurance company's risk should be dispersed; that is, spread among
different geographical areas so a flood or other natural disaster in one area will
not bankrupt the insurance company.
• The insurance company must be able to set standards for accepting the risk.
15. UNDERSTANDING INSURANCE POLICIES:
• Insurance Policy- Written contract between the insured, whether an
individual or organization, and an insurance company that promises to pay
for all or part of the loss by the insured.
• Premium- is the fee the insurance company charges, the cost of the policy
to the insured.
• Claim- Statement of loss that the insured sends to the insurance company to
request payment.
• Insurance companies are designed to make a profit like all of the private
businesses.
• Gather data to determine the extent of the various risks.
16. LAW OF LARGE NUMBERS & PREMIUMS
• The law of large numbers is what makes it possible for insurance companies to
accept risk.
• Law of large numbers- Principle that if a large number of people are
exposed to the same risk, a predictable number of losses will occur during a
given period of time.
• When an insurance company predicts the number of losses that are likely to
occur, it can determine the appropriate premiums for each policy it issues
against that loss.
• The premium will be high enough to cover expected losses and also earn a profit
for the firm and its stockholders.
• Many insurance companies today are charging high premiums for the costs they
anticipate from the increasing numbers of court cases and high damage awards.
17. RULE OF INDEMNITY:
• A rule saying that an insured person or organization cannot collect more than
the actual loss from an insurable risk.
• You also cannot buy two insurance policies as well as two insurance
companies and collect from both for the same loss.
• You cannot gain from risk management, you can only minimize losses.
18. TYPES OF INSURANCE COMPANIES:
• Two types:
• Stock insurance company- type of insurance company owned by
stockholders.
• Mutual insurance company- type of insurance company owned by
its policyholders
• Nonprofit organization, and any excess funds (over losses,
expenses, and growth costs), go to the policyholders/ investors
in the form of dividends or premium reductions.
20. THERE ARE MANY TYPES OF INSURANCE TO COVER
VARIOUS LOSES:
• Property
• Liability
• Insurance
• Health insurance
• Life insurance
21. HEALTH INSURANCE:
• Businesses may offer some sort of health insurance to choose from for their
employees. everything from dental, hospital, eye care, and prescription drugs
may be included.
• Often employees may choose between options from health care providers:
EX-Blue cross/Blue shield.
23. HEALTH SAVINGS ACCOUNT
• These are tax-deferred savings accounts linked to low-cost, high deductible
health insurance policies.
• This allows the employer to take the money from high cost health insurance
and put it into a health savings account and employees can use it when
needed and the leftover money can then be kept by the employee at the end
of the year.
24. DISABILITY INSURANCE
• This replaces part of your income. Up to 50-70% if you become disabled or
unable to work.
• You have to be disabled for at least 60 days to start collecting.
• The premiums for disability insurance vary according to age, occupation, and
income.
25. WORKERS COMPENSATION
• There are laws that require all employers have this insurance for their
employees.
• This is insurance that guarantees payments of wages, medical care, and
rehabilitation services for employees who are injured on the job.
• This also pays benefits to the survivors of those who dies as a result of work
related injuries.
• The cost of this insurance is based on the company’s safety records, how
many employees are on payroll, and the types of hazards that the workers
face.
26. LIABILITY INSURANCE
• This covers people who are liable for professional negligence. For example:
If a lawyer gives bad advice and the client loses money the client may sue
the lawyer for an amount that is equal to that lost.
• Liability insurance will then cover that and pay the lawyers loss.
27. LIFE INSURANCE FOR BUSINESSES
• Life insurance is insurance that ensures the people who are left behind from
a deceased loved one so they can keep there business going. Or for the
immediate family of the deceased.
• Entrepreneurs often buy life insurance that will pay partners and others what
they need to keep the business going.
28. INSURANCE COVERAGE FOR HOME-BASED
BUSINESSES:
• Homeowner’s policies usually don’t
have adequate protection for a home-
based business
• Have limits, for more coverage, they
may need to add an endorsement or
ride to the homeowner’s policy.
• A typical homeowners policy usually
only covers damages up to $2,500 on
the premises of the home-based
business, and $250.00 off the
premises.
• In addition your homeowners policy
won’t typically cover liability arising
from your home business, for example
if a delivery person slips and falls
when delivering a package.
29. THE RISK OF DAMAGING THE ENVIRONMENT
• Risk management goes beyond the protection of individuals, business, non-
profit organizations from known risks.
• The evaluation of worldwide risks with many unknowns, such as climate
change.
• Also means prioritizing these risks so that international funds can be spent
where they can do the most good.
• These risks are the concerns of businesses and governments throughout the
world, with the help of the international scientific community
30. WORKS CITED
• Identity Theft. Cheap Insurance. 5 Apr. 2011. DWI Lawyer. 06 Dec. 2011
<http://www.google.com/imgres?q=theft>.
• Roberts, Armstrong H. 1950s Man Mailman Tripping Falling In Front Of A Suburban Brick
House Accident. 10 June 1953. Corbis Images. 2002. Corbis Corporation. 06 Dec.
2011 <http://www.corbisimages.com/stock-photo/rights-managed/42-
20041922/1950s-man-mailman-tripping-falling-in-front>.
Editor's Notes
Many retail stores use mirrors, video cameras, and other devices to prevent shoplifting. Water sprinklers and smoke detectors minimize fire loss. Most industrial machines have safety devices to protect workers' fingers, eyes, and so on.