This document provides an overview of risk management. It defines risk and uncertainty, and differentiates between the two. It also discusses the objectives of risk management, including understanding risk attitudes and classifying different types of risks. The document outlines various financial and non-financial risks. It then describes techniques for handling risks, including avoidance, mitigation, transfer, and acceptance. The costs associated with risks and risk management are also examined.
Enhance your audiences knowledge with this well researched complete deck. Showcase all the important features of the deck with perfect visuals. This deck comprises of total of thirty one slides with each slide explained in detail. Each template comprises of professional diagrams and layouts. Our professional PowerPoint experts have also included icons, graphs and charts for your convenience. All you have to do is DOWNLOAD the deck. Make changes as per the requirement. Yes, these PPT slides are completely customizable. Edit the colour, text and font size. Add or delete the content from the slide. And leave your audience awestruck with the professionally designed Risk Identification Powerpoint Presentation Slides complete deck.
Mr. Vipulkumar N M
[ M.Com, MBA, (MA Economics), UGC-NET, SET ]
Assistant Professor
Department of Commerce
Kristu Jayanti College (Autonomous)
Bengaluru, Karnataka.
Decision trees, scenario analysis, monte carlo simulation and scenario planni...Hernan Huwyler, MBA CPA
Presentation about tools for risk management: decision tree, scenario analysis, risk and return, monte carlo method with a discussion case covering scenario planning in routing bribery transactions through third-party vendors.
MODULE 1:
Definition of Risk and uncertainty- Classification of Risk, Sources of Risk-external and internal. Risk Management-nature, risk analysis, planning, control and transfer of risk, Administration of properties of an enterprise, provision of adequate security arrangements. Interface between Risk and Insurance- Risk identification, evaluation and management techniques, Risk avoidance, Retention and transfer, Selecti9on and implementation of Techniques. Various terminology, perils, clauses and risk covers.
Enhance your audiences knowledge with this well researched complete deck. Showcase all the important features of the deck with perfect visuals. This deck comprises of total of thirty one slides with each slide explained in detail. Each template comprises of professional diagrams and layouts. Our professional PowerPoint experts have also included icons, graphs and charts for your convenience. All you have to do is DOWNLOAD the deck. Make changes as per the requirement. Yes, these PPT slides are completely customizable. Edit the colour, text and font size. Add or delete the content from the slide. And leave your audience awestruck with the professionally designed Risk Identification Powerpoint Presentation Slides complete deck.
Mr. Vipulkumar N M
[ M.Com, MBA, (MA Economics), UGC-NET, SET ]
Assistant Professor
Department of Commerce
Kristu Jayanti College (Autonomous)
Bengaluru, Karnataka.
Decision trees, scenario analysis, monte carlo simulation and scenario planni...Hernan Huwyler, MBA CPA
Presentation about tools for risk management: decision tree, scenario analysis, risk and return, monte carlo method with a discussion case covering scenario planning in routing bribery transactions through third-party vendors.
MODULE 1:
Definition of Risk and uncertainty- Classification of Risk, Sources of Risk-external and internal. Risk Management-nature, risk analysis, planning, control and transfer of risk, Administration of properties of an enterprise, provision of adequate security arrangements. Interface between Risk and Insurance- Risk identification, evaluation and management techniques, Risk avoidance, Retention and transfer, Selecti9on and implementation of Techniques. Various terminology, perils, clauses and risk covers.
Risk Management Process Steps PowerPoint Presentation Slides SlideTeam
It covers all the important concepts and has relevant templates which cater to your business needs. This complete deck has PPT slides on Risk Management Process Steps PowerPoint Presentation Slides with well suited graphics and subject driven content. This deck consists of total of fifty four slides. All templates are completely editable for your convenience. You can change the colour, text and font size of these slides. You can add or delete the content as per your requirement. Get access to this professionally designed complete deck presentation by clicking the download button below.
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.
Risk is the big topic of conversation in the compliance industry. Businesses are moving at a faster rate and operations continue to increase in complexity, and yet the need for compliance is stronger than ever. So we need to implement a systematic and objective means to maintain compliance, and keep up with the pace of business.
In just 5 minutes, you'll learn why Risk Assessment is the new benchmark, and how to create a simple Risk Matrix for use in your compliance efforts.
Financial risk management is the practice of protecting economic value in a firm by using financial instruments to manage exposure to risk: operational risk, credit risk and market risk, foreign exchange risk, shape risk, volatility risk, liquidity risk, inflation risk, business risk, legal risk, reputational risk, sector risk etc. Similar to general risk management, financial risk management requires identifying its sources, measuring it, and plans to address them.
Financial risk management can be qualitative and quantitative. As a specialization of risk management, financial risk management focuses on when and how to hedge using financial instruments to manage costly exposures to risk.
Risk Management Process Steps PowerPoint Presentation Slides SlideTeam
It covers all the important concepts and has relevant templates which cater to your business needs. This complete deck has PPT slides on Risk Management Process Steps PowerPoint Presentation Slides with well suited graphics and subject driven content. This deck consists of total of fifty four slides. All templates are completely editable for your convenience. You can change the colour, text and font size of these slides. You can add or delete the content as per your requirement. Get access to this professionally designed complete deck presentation by clicking the download button below.
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.
Risk is the big topic of conversation in the compliance industry. Businesses are moving at a faster rate and operations continue to increase in complexity, and yet the need for compliance is stronger than ever. So we need to implement a systematic and objective means to maintain compliance, and keep up with the pace of business.
In just 5 minutes, you'll learn why Risk Assessment is the new benchmark, and how to create a simple Risk Matrix for use in your compliance efforts.
Financial risk management is the practice of protecting economic value in a firm by using financial instruments to manage exposure to risk: operational risk, credit risk and market risk, foreign exchange risk, shape risk, volatility risk, liquidity risk, inflation risk, business risk, legal risk, reputational risk, sector risk etc. Similar to general risk management, financial risk management requires identifying its sources, measuring it, and plans to address them.
Financial risk management can be qualitative and quantitative. As a specialization of risk management, financial risk management focuses on when and how to hedge using financial instruments to manage costly exposures to risk.
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 & RETURN UNDER SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT IS DESCRIBED, ALL THE DETAILED EXPLANATION OF TOPIC IS GIVEN UNDER THIS DOCUMENT.
CAN ALSO REFERRED FOR FINANCIAL MANAGEMENT, INSURANCE.
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@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.
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
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.
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
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
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
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.
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
2. UNDERSTANDING RISK
The objectives of this unit are:
1. Introduce the concept of risk and uncertainty
2. Risk management
3. Understand Subjective risk attitude.
4. Differentiate between Acceptable risk vs. unacceptable risk
5. Classify the different types of risks
6. What are the cost of risks
7. What is handling risks.
8. Determine the need and aims of risk management
9. State the principles of risk management
3. WHAT IS RISK:
In broad terms, risk involves exposure to some type of danger and the
possibility of loss or injury. In general, risks can apply to your physical health or
job security. In finance and investing, risk often refers to the chance an outcome
or investment's actual gains will differ from an expected outcome or return.
DEFINITION :
According to the dictionary – risk refers to the possibility that something
unpleasant or dangerous might happen.
“risk is a condition in which there is a possibility of an adverse deviation from a
desired outcome that is expected or hoped for.”
“our life is obviously risky”
4. Uncertainty:
a situation in which something is not known, or something that is not known or certain.
the feeling of not being sure what will happen in the future.
Uncertainty simply means the lack of certainty or sureness of an event.
Difference between risk and uncertainty:
risk uncertainty
Risk is a measurable uncertainty Uncertainty is an unknown risk
Can be quantitatively measured by any form. Cannot be measured in any form.
certain risks can be fully covered by taking
insurance policies such as fire, flood, draught,
theft, robbery etc.
uncertainty the insurance is not possible.
Risk can be transferred into another risk. But uncertainty cannot be transferred.
5. Risk Management
• The forecasting and evaluation of financial risks together with the
identification of procedures to avoid or minimize their impact
• Risk management is the process of identification, analysis and acceptance or
mitigation of uncertainty in investment decisions.
• Definition: In the world of finance, risk management refers to the practice of
identifying potential risks in advance, analyzing them and taking
precautionary steps to reduce/curb the risk.
6. SUBJECTIVE RISK ATTITUDE
• Subjective risk is what an individual perceives to be a possible unwanted
event. Most people realize, for instance, that it's possible for them to have an
accident, or a heart attack or some other health problem.
• Subjective probability is a person's perception or opinion of the likelihood
of an event. Subjective probability differs from objective probability, either
because the person cannot calculate the actual probability.
• If you are asking for or giving a personal opinion it is subjective.
• There is nothing wrong with a subjective opinion as is based on the personal beliefs of the
individual responding.
7. CLASSIFICATION OF RISK
• Financial and non-financial risks
• Individual and group risks
• Pure and speculative risks
• Static and dynamic risks
• Quantifiable and non-quantifiable risks
8. FINANCIAL RISKS
Financial risk is a broad category of risk directly related to money. It includes risks in areas such as investments, assets,
securities, markets, credit, business operations and the economy.
Kinds of financial risk:
• Systematic risk: Systemic risk is the probability of losses due to collapse of a financial system such as the global
economy or the economy of a single nation. There are several major types of systemic risk; political (conflicts or
trade war b/w nations), security (cyber attacks), accounting (due to accounting frauds).
• Inflation risk: Inflation Risk is the probability that the value of assets and investments will be negatively affected by
change in inflation.
• Liquidity risk: Liquidity risk is the potential that an entity will be unable to acquire the cash required to meet short
or intermediate term obligations. In many cases, capital is locked up in assets that are difficult to convert to cash
when it is required to pay current bills. The following are illustrative examples of liquidity risk.
• Interest rate risk: Interest rate risk is the probability that business costs or the value of assets will be negatively
affected by changes in interest rates.
• Economic risk: economic risk arise due to change in economic conditions like boom and recession, change in
economic policies.
• Political risk: Political risk is the probability that political decisions, events or conditions will result in losses.
Politics affect everything from taxes to interest rates and political events can dramatically impact the price of assets
or cost of doing business.
9. NON-FINANCIAL RISK
Non-financial risks are risks that arise from sources outside the financial
markets such as actions within an entity, environment, community, suppliers and
customers. These risks also have a monetary impact on the organization.
Operational risk, Legal risk, Regulatory risk and model risk are the kind of nan-
financial risk.
10. INDIVIDUAL AND GROUP RISKS
• Individual risk: individual risks are confirmed to individual identities or
small groups. Theft, robbery, fire, accident etc. these are insurable.
• Group risk: group risk affects the economy or its participants on a macro
basis. These risk factors may be socio-economic or political or natural
calamities e.g., earthquakes, floods, wars, unemployment , terror attacks etc.
11. PURE AND SPECULATIVE RISKS
A pure risk is a chance of loss or no loss, but no chance of gain.
For example, the owner of a commercial building faces the risk associated with a possible fire
loss. The building will either burn or not burn. If the building burns, the owner suffers a financial
loss. If the building does not burn, the owner’s financial condition is unchanged. Neither of the
possible outcomes would produce a gain. Because there is no opportunity for financial gain, pure
risks are always undesirable.
Other example: weather, disaster, crime, accident, war etc.
Pure risk can be avoided by insurance, reduce risk ( precautions)
12. TYPES OF PURE RISK ARE:
Purerisk
Personal risk: it includes early death, sudden accident and disability, unemployment etc.
Property risk: reduction in value of assets due to physical damage, fire theft etc.
Liability risk: the risk of legal liability for damage accruing to supplier, customer, vendors etc.
13. Speculative risk
Speculative risks are those there where possibility of loss, no loss, or gain.
They carry some advantages to economy.
Generally not insurable.
Example : if you invest in stock market, you may either gain or loss on stocks.
14. STATIC AND DYNAMIC RISKS
dynamic risks may arise due to change in the economy like fluctuations in price
levels, consumer references, distribution of income, product development, shifts
in technology etc. These are called dynamic risks. As they are less predictable,
difficult to anticipate and quantify, generally they are not insurable.
Static risk are more or less predictable and are not affected by economic
conditions. These can be more predictable and accordingly suitable for
insurance.
15. QUANTIFIABLE AND NON-QUANTIFIABLE RISKS
the risk which can be measured like financial risks are known to be
quantifiable while the situations which may result in repercussions
like tension or loss pf peace are called as non-quantifiable.
16. Acceptable risk
Acceptable risk is a risk exposure that is deemed acceptable to an individual,
organization, community or nation. Acceptable risk are defined in terms of the
probability and impact of a particular risk.They serve to set practical targets
for risk management and are often more helpful than the ideal that no risk is
acceptable. In practice, risk often can’t be reduced to zero due to factors such
as cost and secondary risk.
Risk exposure is an estimate of the probable costs of a risk or set of risks.This can be
calculated for a strategy, program, project or initiative.
17. Unacceptable risk
• Unacceptable Level of risk determined as unsafe level or unsatisfactory level.
• unacceptable risk will always depend on the level of risk that we take.
Example: A racing driver can gain time and possibly win a race by going quicker
through the corners, drive faster and brake later. These are the risks the driver takes in
order to maximize his objective of winning a race. However, by doing so the driver also
increases the likelihood of a crash and also the level of the consequences when this
happens. So, every driver will try to determine its personal risk criteria depending on
the car and circumstances at a given moment. As such, their try to maximize the result,
aiming to stay just below the unacceptable level of risk of having a crash, destroying
the car and getting injured.
18. COSTS OF RISK
Costs that are occur on risk management , risk control, risk
mitigation, risk transfer and losses due to risk.
Cost of risk is the managing risk and incurring losses due to risk. It
is a metric that can be calculate for a financial period or forecast for
a future period. The common elements of cost of risk are following:
Administration costs: the cost of managing risk such as budget of a
risk management team.
19. Mitigation costs: the costs of reducing risk. For example, a firm that buys
specialized hardware and software to reduce information security risk.
risk control costs: the cost of operational processes designed to reduce risk
such as credit checks that are run to customers.
Transfer costs: the cost of transferring risk using techniques such as insurance
or financial instruments.
Losses: losses that occur because of a risk. For example, losses that occur when
a customer fail to pay delivered services is considered a loss due to credit risk.
20. Total cost of risk is the sum of all aspects of an organization's
operations that relate to risk, losses and related loss adjustment
expenses, risk control costs, transfer costs, administrative costs and
mitigation cost.
21. Handling of risk
Risk Handling (now called risk Mitigation) is the process that identifies,
evaluates, selects, and implements options in order to set risk at acceptable
levels given program constraints and objectives. This includes the specifics on
what should be done, when it should be accomplished, who is responsible, and
associated with cost of risk.
It is based on the loss exposure analysis, decision is made about the way to
handle the risk.
Risk mitigation revolves around reducing the impact of potential risk. A
jewelry store might mitigate the risk of theft, by having a security system or
even a security guard at the entrance.
22. TECHNIQUES FOR RISK HANDLING
• It the part of risk management process.
• the most common types of risk management techniques include:
avoidance
mitigation
transfer
acceptance.
23. AVOIDANCE
• Avoidance is a method for mitigating risk by not participating in activities that may
incur injury, sickness or death.
• Smoking cigarettes is an example of one such activity because avoiding it may lessen
both health and financial risks. smoking is the No. 1 risk factor for getting lung
cancer, and the risk only increases the longer that people smoke.
• Life insurance companies mitigate this risk on their end by raising premiums for
smokers than nonsmokers. Under the Affordable Health Care Act, also known as
Obamacare, health insurers are able to increase premiums based on age, geography,
family size and smoking status. The law allows for up to a 50% surcharge on
premiums for smokers.
24. MITIGATION
Mitigation means reducing risk of loss from the occurrence of any undesirable
event.
In general, mitigation means to minimize degree of any loss or harm.
Businesses can also choose to manage risk through mitigation or reduction.
The process by which an organization introduces specific measures to minimize
or eliminate unacceptable risk associated with its operations.
25. RETENTION
Retention is the acknowledgment and acceptance of a risk as a given.
Usually, this accepted risk is a cost to help offset larger risks down the road,
such as opting to select a lower premium health insurance plan that carries a
higher deductible rate. The initial risk is the cost of having to pay more out-of-
pocket medical expenses if health issues arise. If the issue becomes more serious
or life-threatening, then the health insurance benefits are available to cover most
of the costs beyond the deductible. If the individual has no serious health issues
warranting any additional medical expenses for the year, then they avoid the
out-of-pocket payments, mitigating the larger risk altogether.
26. TRANSFER
• The use of health insurance is an example of transferring risk because the financial risks
associated with health care are transferred from the individual to the insurer.
• businesses choose to transfer risk away from the organization. Risk transfer typically takes
place by paying a premium to an insurance company in exchange for protection against
substantial financial loss.
• For example, property insurance can be used to protect a company from the costs incurred
when a building or other facility is damaged. Similarly, professionals in the financial
services industry can purchase errors and omissions insurance to protect them from lawsuits
brought by customers or clients claiming they received poor or erroneous advice.
27. RISK ACCEPTANCE
Risk management can also be implemented through the acceptance of risk. Companies retain a
certain level of risk brought on by specific projects or expansion if the
anticipated profit generated from the activity is far greater than its potential risk.
For example, pharmaceutical companies often utilize risk retention or acceptance when
developing a new drug. The cost of research and development does not outweigh the potential
for revenue generated from the sale of the new drug, so the risk is deemed acceptable.