13 Teams
__
Average talent teams that get along well with each other are more productive than gifted teams that don’t get along. It doesn’t matter how well a team with low emotional intelligence is in control of the numbers. They can’t even decide what to try to do.
14 Stress
___
Difficulties at work and in our relationships put us under stress. Stress makes it difficult for us to find solutions to problems. When we can’t find solutions to problems, we get more stressed. To get rid of this dead end, we need to know how to manage our stressful situations.
15 Marriage
____
The secret of long and happy marriages is sincerity in your feelings. If your marriage was not built on this basis of intimacy from the very beginning, it will begin to crack over the years. Even small problems become unsolvable. You have to be emotionally open at the beginning of the road.
16 Leadership
______
Leadership does not mean dominance. Leading your colleagues to a common goal and making them believe in the reality of this purpose. Successful leaders are those who can keep their team’s motivation alive for many years. You have to make them desire the work to be done.
17. Emotions Are All Normal
___
Anger, hatred, love, happiness… You can understand when and under what circumstances these feelings will emerge by following yourself. You may have these feelings depending on how you interpret the events you encounter. The important thing is to be able to react independently of your feelings. You may find yourself making promises that you cannot keep because you are happy, or you may resort to violence when you are angry.
18/ Being able to Express Your Emotions
____
Not everyone’s level of empathy can be very good. You may be in a difficult situation immediately. You may feel bad, but people may not understand it. In these situations, you may need to express your feelings a little more directly.
19/You Are Not Your Emotions
______
Keep doing what you need to do, no matter how you feel. Success is achieved by people who cannot give up no matter what their feelings and thoughts are. Don’t let your feelings affect your actions.
20/ Timing
__
As soon as you feel a different emotion, try to think before you act. Because emotional intelligence moves faster than rational intelligence, it can make you act irrationally and make you say any unnecessary words.
Thanks for reading
~ 𝗧𝗼𝗻𝗴𝘀𝗮 𝗚𝘂𝘆
Book:- https://amzn.to/3XsVTz2..
Risk Managment and Insurance all chapters.pptxetebarkhmichale
THE HIDDEN POWER OF
UNIVERSAL LAWS
Contents
Introduction 2
Chapter - 1 3
The Law of Attraction 3
Chapter 2 4
Your Thoughts Control You 4
Chapter 3 5
Visualize Your Thoughts 5
Chapter 4 5
The Law of Vibration 5
Chapter 5 5
Chapter 6 5
Understanding Karma 5
Chapter 7 6
Chapter 8 7
The Law of Love 7
Chapter 9 7
The Law of Allowing 7
Chapter 10 7
Summary 7
Introduction
In life, there are universal laws that govern everything we do. These laws are so perfect that if you were to align yourself with them, you could have so much prosperity that it would be coming out of your ears. This is because God created the universe in the image and likeness of him. It is failure to follow the universal laws that causes one to fail. The laws that were created consisted of the following: ·
Law of Gratitude: The Law of Gratitude states that you must show gratitude for what you have. By having gratitude, you speed your growth and success faster than you normally would. This is because if you appreciate the things you have, even if they are small things, you are open to receiving more.
Law of Attraction: The Law of Attraction states that if you focus your attention on something long enough you will get it. It all starts in the mind. You think of something and when you think of it, you manifest that in your life. This could be a mental picture of a check or actual cash, but you think about it with an image.
Law of Karma: the Law of Karma states that if you go out and do something bad, it will come back to you with something bad. If you do well for others, good things happen to you. The principle here is to know you can create good or bad through your actions. There will always be an effect no matter what.
Law of Love: the Law of Love states that love is more than emotion or feeling; it is energy. It has substance and can be felt. Love is also considered acceptance of oneself or others. This means that no matter what you do in life if you do not approach or leave the situation out of love, it won't work.
Law of Allowing: The Law of Allowing states that for us to get what we want, we must be receptive to it. We can't merely say to the Universe that we want something if we don't allow ourselves to receive it. This will defeat our purpose for wanting it in the first place.
Law of Vibration: the Law of Vibration states that if you wish on something and use your thoughts to visualize it, you are halfway there to get it. To complete the cycle you must use the Law of Vibration to feel part of what you want. Do this and you'll have anything you want in life.
For everything to function properly there has to be structure. Without structure, our world, or universe, would be in utter chaos. Successful people understand universal laws and apply them daily. They may not acknowledge that to you, but they do follow the laws. There is a higher power and this higher power controls the universe and what we get out of it. People who know this, but wish to direct their own lives, follow
If you lack discipline, read this POST.
1. Define a clear goal.
Without a clear goal it is hard to define exactly what you want. Your mind doesn’t need an invitation to procrastinate. Begin to visualise what it is you really want. Writing down your goal will help to bring it into reality.
2. Establish a clear plan.
You may know what it is you want but if you don’t know how to achieve it, the chances are, you will fail. Outline a plan that breaks down each individual step you will need to attain your goal. Small steps lead to big changes.
3. Strengthen your self confidence.
One thing the successful in society all have in common is self confidence. You need to develop the mindset that you are good enough to achieve what you set out to, otherwise why even try ? You can do this.
4. Build habits.
Habits make life 10x easier. The more you have to think about what you’re doing the greater chance that your mind will start to wonder. Systems and habits remove the guessing and give you a clear step by step process to follow.
5. Evaluate your time.
You often hear people say “I don’t have time” when in reality they go to work then spend the rest of their night mindlessly scrolling. Plan out your day, there is enough time to enjoy yourself while also getting the important tasks done.
6. Start small.
Often when you lack discipline, it is down to thinking that you have to do it all at once. Learn to break down tasks into manageable pieces. You’ll find that you get more done and be pleasantly surprised at how much more enjoyable it is.
7. Look after yourself
Strong mental and physical health will aid in your battle to destroy a lack of self discipline. Develop a positive self talk process as well as making sure you eat well and exercise on a regular basis. Movement will help clear your mind.
8. Hold yourself accountable.
You can always ask friends or family to hold you accountable but what happens when they are not there ? Developing self accountability puts you in control. You can identify your triggers and deal with them accordingly. Master your own destiny.
9. Consistency is key.
Look, there will be days that don’t workout as planned but don’t let this ruin your overall plan. Get back in the game and bring the victory home.
Thank you for reading 📚 ❤️ 🙏.If you lack discipline, read this POST.
1. Define a clear goal.
Without a clear goal it is hard to define exactly what you want. Your mind doesn’t need an invitation to procrastinate. Begin to visualise what it is you really want. Writing down your goal will help to bring it into reality.
2. Establish a clear plan.
You may know what it is you want but if you don’t know how to achieve it, the chances are, you will fail. Outline a plan that breaks down each individual step you will need to attain your goal. Small steps lead to big changes.
3. Strengthen your self confidence.
One thing the successful in society all have in common is self confidence. You need to develop the mindset that you are
Risk affects every aspect of an organization. The effects of risk are not
confined within any predictable boundaries; a single event can easily
influence several areas of an organization at once, producing consequences
far beyond the immediate impact. The pervasiveness and complexity of risk
presents strong challenges to managers, one of the most important being
the coordination of risk management across areas within the organization.
It deals with: the nature and management of pure risks, insurance and
reinsurance; risk concepts, classification of risks, management of pure risks
through various risk handling tools, industrial safety, general principles of
insurance and major classes of insurance, reinsurance and development &
regulation of the insurance Ethiopia
Risk managment and Insurance chap1-3 Addis Ababa University School of CommerceAshenafi Abera Wolde
Risk affects every aspect of an organization. The effects of risk are not
confined within any predictable boundaries; a single event can easily
influence several areas of an organization at once, producing consequences
far beyond the immediate impact. The pervasiveness and complexity of risk
presents strong challenges to managers, one of the most important being
the coordination of risk management across areas within the organization.
It deals with: the nature and management of pure risks, insurance and
reinsurance; risk concepts, classification of risks, management of pure risks
through various risk handling tools, industrial safety, general principles of
insurance and major classes of insurance, reinsurance and development &
regulation of the insurance Ethiopia
Introduction to risk management and insuranceVipul Kumar
This document provides an introduction and overview of risk management concepts. It defines key terms like risk, peril, and hazard, explaining that risk refers to the possibility of loss, peril is the cause of loss, and hazard increases the possibility of loss. It also distinguishes between pure risk, which only involves the possibility of loss or no loss, and speculative risk, which involves the possibility of both gain and loss. The document discusses different types of pure risks like personal risks, property risks, and liability risks. It also covers the risk management process and various ways of managing risk.
Mr. Vipulkumar N M
[ M.Com, MBA, (MA Economics), UGC-NET, SET ]
Assistant Professor
Department of Commerce
Kristu Jayanti College (Autonomous)
Bengaluru, Karnataka.
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
This document provides an introduction to insurance, including key concepts related to risk. It discusses the nature of risk and how it can be measured using probability. It also defines related concepts like peril, hazard, and loss. The document outlines different categories of risk and various methods for handling risk, including risk avoidance, loss control, risk retention, and risk transfer. It then explains the process of risk management and important characteristics of insurable risk.
Risk Managment and Insurance all chapters.pptxetebarkhmichale
THE HIDDEN POWER OF
UNIVERSAL LAWS
Contents
Introduction 2
Chapter - 1 3
The Law of Attraction 3
Chapter 2 4
Your Thoughts Control You 4
Chapter 3 5
Visualize Your Thoughts 5
Chapter 4 5
The Law of Vibration 5
Chapter 5 5
Chapter 6 5
Understanding Karma 5
Chapter 7 6
Chapter 8 7
The Law of Love 7
Chapter 9 7
The Law of Allowing 7
Chapter 10 7
Summary 7
Introduction
In life, there are universal laws that govern everything we do. These laws are so perfect that if you were to align yourself with them, you could have so much prosperity that it would be coming out of your ears. This is because God created the universe in the image and likeness of him. It is failure to follow the universal laws that causes one to fail. The laws that were created consisted of the following: ·
Law of Gratitude: The Law of Gratitude states that you must show gratitude for what you have. By having gratitude, you speed your growth and success faster than you normally would. This is because if you appreciate the things you have, even if they are small things, you are open to receiving more.
Law of Attraction: The Law of Attraction states that if you focus your attention on something long enough you will get it. It all starts in the mind. You think of something and when you think of it, you manifest that in your life. This could be a mental picture of a check or actual cash, but you think about it with an image.
Law of Karma: the Law of Karma states that if you go out and do something bad, it will come back to you with something bad. If you do well for others, good things happen to you. The principle here is to know you can create good or bad through your actions. There will always be an effect no matter what.
Law of Love: the Law of Love states that love is more than emotion or feeling; it is energy. It has substance and can be felt. Love is also considered acceptance of oneself or others. This means that no matter what you do in life if you do not approach or leave the situation out of love, it won't work.
Law of Allowing: The Law of Allowing states that for us to get what we want, we must be receptive to it. We can't merely say to the Universe that we want something if we don't allow ourselves to receive it. This will defeat our purpose for wanting it in the first place.
Law of Vibration: the Law of Vibration states that if you wish on something and use your thoughts to visualize it, you are halfway there to get it. To complete the cycle you must use the Law of Vibration to feel part of what you want. Do this and you'll have anything you want in life.
For everything to function properly there has to be structure. Without structure, our world, or universe, would be in utter chaos. Successful people understand universal laws and apply them daily. They may not acknowledge that to you, but they do follow the laws. There is a higher power and this higher power controls the universe and what we get out of it. People who know this, but wish to direct their own lives, follow
If you lack discipline, read this POST.
1. Define a clear goal.
Without a clear goal it is hard to define exactly what you want. Your mind doesn’t need an invitation to procrastinate. Begin to visualise what it is you really want. Writing down your goal will help to bring it into reality.
2. Establish a clear plan.
You may know what it is you want but if you don’t know how to achieve it, the chances are, you will fail. Outline a plan that breaks down each individual step you will need to attain your goal. Small steps lead to big changes.
3. Strengthen your self confidence.
One thing the successful in society all have in common is self confidence. You need to develop the mindset that you are good enough to achieve what you set out to, otherwise why even try ? You can do this.
4. Build habits.
Habits make life 10x easier. The more you have to think about what you’re doing the greater chance that your mind will start to wonder. Systems and habits remove the guessing and give you a clear step by step process to follow.
5. Evaluate your time.
You often hear people say “I don’t have time” when in reality they go to work then spend the rest of their night mindlessly scrolling. Plan out your day, there is enough time to enjoy yourself while also getting the important tasks done.
6. Start small.
Often when you lack discipline, it is down to thinking that you have to do it all at once. Learn to break down tasks into manageable pieces. You’ll find that you get more done and be pleasantly surprised at how much more enjoyable it is.
7. Look after yourself
Strong mental and physical health will aid in your battle to destroy a lack of self discipline. Develop a positive self talk process as well as making sure you eat well and exercise on a regular basis. Movement will help clear your mind.
8. Hold yourself accountable.
You can always ask friends or family to hold you accountable but what happens when they are not there ? Developing self accountability puts you in control. You can identify your triggers and deal with them accordingly. Master your own destiny.
9. Consistency is key.
Look, there will be days that don’t workout as planned but don’t let this ruin your overall plan. Get back in the game and bring the victory home.
Thank you for reading 📚 ❤️ 🙏.If you lack discipline, read this POST.
1. Define a clear goal.
Without a clear goal it is hard to define exactly what you want. Your mind doesn’t need an invitation to procrastinate. Begin to visualise what it is you really want. Writing down your goal will help to bring it into reality.
2. Establish a clear plan.
You may know what it is you want but if you don’t know how to achieve it, the chances are, you will fail. Outline a plan that breaks down each individual step you will need to attain your goal. Small steps lead to big changes.
3. Strengthen your self confidence.
One thing the successful in society all have in common is self confidence. You need to develop the mindset that you are
Risk affects every aspect of an organization. The effects of risk are not
confined within any predictable boundaries; a single event can easily
influence several areas of an organization at once, producing consequences
far beyond the immediate impact. The pervasiveness and complexity of risk
presents strong challenges to managers, one of the most important being
the coordination of risk management across areas within the organization.
It deals with: the nature and management of pure risks, insurance and
reinsurance; risk concepts, classification of risks, management of pure risks
through various risk handling tools, industrial safety, general principles of
insurance and major classes of insurance, reinsurance and development &
regulation of the insurance Ethiopia
Risk managment and Insurance chap1-3 Addis Ababa University School of CommerceAshenafi Abera Wolde
Risk affects every aspect of an organization. The effects of risk are not
confined within any predictable boundaries; a single event can easily
influence several areas of an organization at once, producing consequences
far beyond the immediate impact. The pervasiveness and complexity of risk
presents strong challenges to managers, one of the most important being
the coordination of risk management across areas within the organization.
It deals with: the nature and management of pure risks, insurance and
reinsurance; risk concepts, classification of risks, management of pure risks
through various risk handling tools, industrial safety, general principles of
insurance and major classes of insurance, reinsurance and development &
regulation of the insurance Ethiopia
Introduction to risk management and insuranceVipul Kumar
This document provides an introduction and overview of risk management concepts. It defines key terms like risk, peril, and hazard, explaining that risk refers to the possibility of loss, peril is the cause of loss, and hazard increases the possibility of loss. It also distinguishes between pure risk, which only involves the possibility of loss or no loss, and speculative risk, which involves the possibility of both gain and loss. The document discusses different types of pure risks like personal risks, property risks, and liability risks. It also covers the risk management process and various ways of managing risk.
Mr. Vipulkumar N M
[ M.Com, MBA, (MA Economics), UGC-NET, SET ]
Assistant Professor
Department of Commerce
Kristu Jayanti College (Autonomous)
Bengaluru, Karnataka.
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
This document provides an introduction to insurance, including key concepts related to risk. It discusses the nature of risk and how it can be measured using probability. It also defines related concepts like peril, hazard, and loss. The document outlines different categories of risk and various methods for handling risk, including risk avoidance, loss control, risk retention, and risk transfer. It then explains the process of risk management and important characteristics of insurable risk.
Introduction to Risk management and insurance. Insurance Risk Management is the assessment and quantification of the likelihood and financial impact of events that may occur in the customer's world that require settlement by the insurer; and the ability to spread the risk of these events occurring across other insurance underwriter's in the market.
The document discusses risk management and provides definitions and classifications of risk. It describes how insurers are seriously concerned with risk management due to the large liabilities they assume through insurance products. It defines risk and discusses different types of risks such as physical risks, social risks, pure risks, and dynamic risks. It also discusses different approaches to risk management, including traditional, integrated, and enterprise approaches.
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.
The document discusses the concept of risk in society. It defines risk as uncertainty, and distinguishes between objective and subjective risk. Objective risk can be measured through statistics, while subjective risk is based on perception. It also defines chance of loss as the probability of an event occurring, and distinguishes between objective and subjective probabilities. The document outlines different categories of risk like pure risk and speculative risk, and types of risks like personal, property, and liability risks. It discusses the burden of risks on society and different methods of handling risk, including avoidance, loss control, retention, and insurance.
The document defines risk and discusses techniques for managing risk. It defines risk as uncertainty about potential losses and distinguishes between objective and subjective risk. It also defines chance of loss, perils, hazards, and different types of risk like pure risk and diversifiable risk. Major personal and commercial risks are outlined. Techniques for managing risk include risk control methods like loss prevention and risk financing methods like insurance, which transfers risk to an insurer by pooling many insured together.
Rejda chapter 1 slides risk and its treatmentnlmccready
The document defines risk and discusses techniques for managing risk. It defines risk as uncertainty about potential losses and distinguishes between objective and subjective risk. It also defines chance of loss, perils, hazards, and different types of risk like pure risk and diversifiable risk. Major personal and commercial risks are outlined. Techniques for managing risk include risk control methods like loss prevention and risk financing methods like insurance, which transfers risk to an insurer by pooling together many insured individuals and companies.
This chapter discusses risk and techniques for managing risk. It defines risk as uncertainty about potential losses and classifies risks as pure, speculative, diversifiable, and non-diversifiable. Major personal risks include death, health issues, unemployment, and property damage or theft. Businesses also face property, liability, and income risks. Risk management techniques include risk control to prevent or lessen losses, risk financing to pay for losses, and risk transfer like insurance which spreads losses among many. Insurance provides a practical way for most people and businesses to handle major risks.
This document provides an introduction to risk management concepts. It defines risk as a compound measure of probability and magnitude of adverse effects. It notes that risk involves uncertainty about future events and potential for loss. The document discusses different types of risks like known risks, predictable risks, and unpredictable risks. It also distinguishes between fundamental or macro risks that affect large numbers of people versus particular or micro risks that individuals can partially control. Finally, it covers topics like pure risks versus speculative risks, diversifiable versus non-diversifiable risks, and risk measures used in portfolio theory.
This document defines key concepts related to risk and loss treatment. It discusses definitions of risk, loss exposure, perils, hazards, and classifications of risk such as pure vs speculative, diversifiable vs non-diversifiable, enterprise, and systematic. It also covers personal risks like premature death, retirement, health issues, unemployment, and addiction as well as commercial/business risks including property damage, liability, loss of income, cybersecurity, and other risks.
This document provides an overview of a course on Risk Management and Insurance in Agribusiness. The course will cover topics such as the risks farmers face from unpredictable weather, prices, labor availability, and policy changes. It will teach skills in risk management and the role of insurance in protecting against losses. Key terms are defined, such as risk, uncertainty, peril, hazard, and different types of risks including static, dynamic, physical, moral, and morale hazards. The course aims to help farmers better understand and manage the risks within their operations.
This document defines risk and outlines techniques for managing risk. It defines risk as uncertainty about a loss and distinguishes between objective and subjective risk. It also defines chance of loss, perils, hazards, and classifications of risk such as pure risk and diversifiable risk. Major personal and commercial risks are discussed. The document outlines techniques for managing risk, including risk control methods and risk financing methods such as retention, self-insurance, and insurance.
In this presentation we will help you to “Understand Risk”, with detailed description on the concept, types and classification of risks while also talking about effective ways to handle different Types of Risk in the banking sector.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit:
http://www.welingkaronline.org/distance-learning/online-mba.html
Risk refers to the possibility of loss or an unfavorable outcome from an action or event. It includes two elements - an uncertain outcome and the possibility of an unfavorable result. There are several types of risk including pure risk (loss or no loss), speculative risk (loss, gain, or no change), and fundamental risk that affects large populations. Businesses also face strategic, compliance, operational, financial, and reputational risks. Perils are the causes of potential losses, such as natural events, theft, riots, strikes, accidents, and economic downturns. Hazards increase the severity of losses from perils. Risk management aims to reduce or mitigate risks and losses through insurance and other techniques.
Risk management concepts and principles are identified. Risk is defined as the chance of harm or loss from a hazard. It is differentiated from hazard, which is the source of potential harm. Sources of risk include uncertainty in financial markets, project failures, legal liabilities, credit risk, accidents, natural disasters, attacks, and unpredictable events. Strategies to manage threats include avoidance, reduction, transfer, and retention. Principles of risk management established by the International Organization for Standardization are also outlined, such as creating value, being integrated into processes, and addressing uncertainty.
This document discusses risk and its treatment. It begins with definitions of risk and discusses the various types of risk individuals and businesses face, such as personal risks, property risks, and liability risks. It also outlines techniques for managing risk, such as avoidance, loss control, retention, non-insurance transfers, and insurance. The document provides learning objectives, outlines the key topics, and includes short answer questions, multiple choice questions, true/false questions, and case applications related to risk management.
This document discusses safety, risk, and risk assessment in engineering. It defines safety and risk, and explains how they are related but different. Safety is when risks are known and judged as acceptable, while risk is the potential for something harmful to occur. There are various types of risks, including acceptable risks, voluntary risks, job-related risks, and public risks. Properly assessing safety and risk is important for engineers. It involves understanding uncertainties, testing for safety, and analyzing how safety, risk, and costs are interrelated for different types of products and projects. The overall goal of risk assessment is to evaluate hazards and minimize risks through added control measures to create a safer environment.
ADVICE TO ALL EMPLOYEES
1. Build a home earlier. Be it rural home or urban home. Building a house at 50 is not an achievement. Don't get used to government houses. This comfort is so dangerous. Let all your family have good time in your house.
2. Go home. Don't stick at work all the year. You are not the pillar of your department. If you drop dead today, you will be replaced immediately and operations will continue. Make your family a priority.
3. Don't chase promotions. Master your skills and be excellent at what you do. If they want to promote you, that's fine if they don't, stay positive to your personal.
development.
4. Avoid office or work gossip. Avoid things that tarnish your name or reputation. Don't join the bandwagon that backbites your bosses and colleagues. Stay away from negative gatherings that have only people as their agenda.
5. Don't ever compete with your bosses. You will burn your fingers. Don't compete with your colleagues, you will fry your brain.
6. Ensure you have a side business. Your salary will not sustain your needs in the long run.
7. Save some money. Let it be deducted automatically from your payslip.
8. Borrow a loan to invest in a business or to change a situation not to buy luxury. Buy luxury from your profit.
9. Keep your life,marriage and family private. Let them stay away from your work. This is very important.
10. Be loyal to yourself and believe in your work. Hanging around your boss will alienate you from your colleagues and your boss may finally dump you when he leaves.
11. Retire early. The best way to plan for your exit was when you received the employment letter. The other best time is today. By 40 to 50 be out.
12. Join work welfare and be an active member always. It will help you a lot when any eventuality occurs.
13.Take leave days utilize them by developing yr future home or projects..usually what you do during yr leave days is a reflection of how you'll live after retirement..If it means you spend it all holding a remote control watching series on Zee world, expect nothing different after retirement.
14. Start a project whilst still serving or working. Let your project run whilst at work and if it doesn't do well, start another one till it's running viably. When your project is viably running then retire to manage your business. Most people or pensioners fail in life because they retire to start a project instead of retiring to run a project.
15. Pension money is not for starting a project or buy a stand or build a house but it's money for your upkeep or to maintain yourself in good health. Pension money is not for paying school fees or marrying a young wife but to look after yourself.
16. Always remember, when you retire never be a case study for living a miserable life after retirement but be a role model for colleagues to think of retiring too.
17. Don't retire just because you are finished or you are now a burden to the company and just wait for your day t
Entrepreneurship Short Note.pptx for Business Studentsetebarkhmichale
Success demands these 6 things..
(The Secret Formula)
1. Hard Work
Don't believe in luck, believe in hard work.
Stop trying to rush the process or searching for a shortcut.
There is none.
2. Patience
If you are losing the patience, you are losing the battle.
First nothing happens, then it happens slowly and suddenly all at once.
Most people give up at stage one.
3. Sacrifice
If you don't sacrifice for what you want, then what you want becomes the sacrifice.
Everything has its price. The question is: Are you ready to pay it for the life you desire?
4. Consistency
Consistency is what transforms average into excellence.
Without consistency, you will never achieve greater success.
5. Discipline
Motivation gets you going, but discipline keeps you growing.
There will be days when you don't “feel” like doing it.
You have to push through those days regardless of how you feel.
6. Self Confidence
Confidence is, I'll be fine if they don't like me.
GOD BLESS YOU🙏❤️
EYA Oliver Uchenna®️
Success demands these 6 things..
(The Secret Formula)
1. Hard Work
Don't believe in luck, believe in hard work.
Stop trying to rush the process or searching for a shortcut.
There is none.
2. Patience
If you are losing the patience, you are losing the battle.
First nothing happens, then it happens slowly and suddenly all at once.
Most people give up at stage one.
3. Sacrifice
If you don't sacrifice for what you want, then what you want becomes the sacrifice.
Everything has its price. The question is: Are you ready to pay it for the life you desire?
4. Consistency
Consistency is what transforms average into excellence.
Without consistency, you will never achieve greater success.
5. Discipline
Motivation gets you going, but discipline keeps you growing.
There will be days when you don't “feel” like doing it.
You have to push through those days regardless of how you feel.
6. Self Confidence
Confidence is, I'll be fine if they don't like me.
GOD BLESS YOU🙏❤️
EYA Oliver Uchenna®️
Success demands these 6 things..
(The Secret Formula)
1. Hard Work
Don't believe in luck, believe in hard work.
Stop trying to rush the process or searching for a shortcut.
There is none.
2. Patience
If you are losing the patience, you are losing the battle.
First nothing happens, then it happens slowly and suddenly all at once.
Most people give up at stage one.
3. Sacrifice
If you don't sacrifice for what you want, then what you want becomes the sacrifice.
Everything has its price. The question is: Are you ready to pay it for the life you desire?
4. Consistency
Consistency is what transforms average into excellence.
Without consistency, you will never achieve greater success.
5. Discipline
Motivation gets you going, but discipline keeps you growing.
There will be days when you don't “feel” like doing it.
You have to push through those days regardless of how you feel.
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Similar to Risk Managment and Insurance all chapters.pptx
Introduction to Risk management and insurance. Insurance Risk Management is the assessment and quantification of the likelihood and financial impact of events that may occur in the customer's world that require settlement by the insurer; and the ability to spread the risk of these events occurring across other insurance underwriter's in the market.
The document discusses risk management and provides definitions and classifications of risk. It describes how insurers are seriously concerned with risk management due to the large liabilities they assume through insurance products. It defines risk and discusses different types of risks such as physical risks, social risks, pure risks, and dynamic risks. It also discusses different approaches to risk management, including traditional, integrated, and enterprise approaches.
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.
The document discusses the concept of risk in society. It defines risk as uncertainty, and distinguishes between objective and subjective risk. Objective risk can be measured through statistics, while subjective risk is based on perception. It also defines chance of loss as the probability of an event occurring, and distinguishes between objective and subjective probabilities. The document outlines different categories of risk like pure risk and speculative risk, and types of risks like personal, property, and liability risks. It discusses the burden of risks on society and different methods of handling risk, including avoidance, loss control, retention, and insurance.
The document defines risk and discusses techniques for managing risk. It defines risk as uncertainty about potential losses and distinguishes between objective and subjective risk. It also defines chance of loss, perils, hazards, and different types of risk like pure risk and diversifiable risk. Major personal and commercial risks are outlined. Techniques for managing risk include risk control methods like loss prevention and risk financing methods like insurance, which transfers risk to an insurer by pooling many insured together.
Rejda chapter 1 slides risk and its treatmentnlmccready
The document defines risk and discusses techniques for managing risk. It defines risk as uncertainty about potential losses and distinguishes between objective and subjective risk. It also defines chance of loss, perils, hazards, and different types of risk like pure risk and diversifiable risk. Major personal and commercial risks are outlined. Techniques for managing risk include risk control methods like loss prevention and risk financing methods like insurance, which transfers risk to an insurer by pooling together many insured individuals and companies.
This chapter discusses risk and techniques for managing risk. It defines risk as uncertainty about potential losses and classifies risks as pure, speculative, diversifiable, and non-diversifiable. Major personal risks include death, health issues, unemployment, and property damage or theft. Businesses also face property, liability, and income risks. Risk management techniques include risk control to prevent or lessen losses, risk financing to pay for losses, and risk transfer like insurance which spreads losses among many. Insurance provides a practical way for most people and businesses to handle major risks.
This document provides an introduction to risk management concepts. It defines risk as a compound measure of probability and magnitude of adverse effects. It notes that risk involves uncertainty about future events and potential for loss. The document discusses different types of risks like known risks, predictable risks, and unpredictable risks. It also distinguishes between fundamental or macro risks that affect large numbers of people versus particular or micro risks that individuals can partially control. Finally, it covers topics like pure risks versus speculative risks, diversifiable versus non-diversifiable risks, and risk measures used in portfolio theory.
This document defines key concepts related to risk and loss treatment. It discusses definitions of risk, loss exposure, perils, hazards, and classifications of risk such as pure vs speculative, diversifiable vs non-diversifiable, enterprise, and systematic. It also covers personal risks like premature death, retirement, health issues, unemployment, and addiction as well as commercial/business risks including property damage, liability, loss of income, cybersecurity, and other risks.
This document provides an overview of a course on Risk Management and Insurance in Agribusiness. The course will cover topics such as the risks farmers face from unpredictable weather, prices, labor availability, and policy changes. It will teach skills in risk management and the role of insurance in protecting against losses. Key terms are defined, such as risk, uncertainty, peril, hazard, and different types of risks including static, dynamic, physical, moral, and morale hazards. The course aims to help farmers better understand and manage the risks within their operations.
This document defines risk and outlines techniques for managing risk. It defines risk as uncertainty about a loss and distinguishes between objective and subjective risk. It also defines chance of loss, perils, hazards, and classifications of risk such as pure risk and diversifiable risk. Major personal and commercial risks are discussed. The document outlines techniques for managing risk, including risk control methods and risk financing methods such as retention, self-insurance, and insurance.
In this presentation we will help you to “Understand Risk”, with detailed description on the concept, types and classification of risks while also talking about effective ways to handle different Types of Risk in the banking sector.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit:
http://www.welingkaronline.org/distance-learning/online-mba.html
Risk refers to the possibility of loss or an unfavorable outcome from an action or event. It includes two elements - an uncertain outcome and the possibility of an unfavorable result. There are several types of risk including pure risk (loss or no loss), speculative risk (loss, gain, or no change), and fundamental risk that affects large populations. Businesses also face strategic, compliance, operational, financial, and reputational risks. Perils are the causes of potential losses, such as natural events, theft, riots, strikes, accidents, and economic downturns. Hazards increase the severity of losses from perils. Risk management aims to reduce or mitigate risks and losses through insurance and other techniques.
Risk management concepts and principles are identified. Risk is defined as the chance of harm or loss from a hazard. It is differentiated from hazard, which is the source of potential harm. Sources of risk include uncertainty in financial markets, project failures, legal liabilities, credit risk, accidents, natural disasters, attacks, and unpredictable events. Strategies to manage threats include avoidance, reduction, transfer, and retention. Principles of risk management established by the International Organization for Standardization are also outlined, such as creating value, being integrated into processes, and addressing uncertainty.
This document discusses risk and its treatment. It begins with definitions of risk and discusses the various types of risk individuals and businesses face, such as personal risks, property risks, and liability risks. It also outlines techniques for managing risk, such as avoidance, loss control, retention, non-insurance transfers, and insurance. The document provides learning objectives, outlines the key topics, and includes short answer questions, multiple choice questions, true/false questions, and case applications related to risk management.
This document discusses safety, risk, and risk assessment in engineering. It defines safety and risk, and explains how they are related but different. Safety is when risks are known and judged as acceptable, while risk is the potential for something harmful to occur. There are various types of risks, including acceptable risks, voluntary risks, job-related risks, and public risks. Properly assessing safety and risk is important for engineers. It involves understanding uncertainties, testing for safety, and analyzing how safety, risk, and costs are interrelated for different types of products and projects. The overall goal of risk assessment is to evaluate hazards and minimize risks through added control measures to create a safer environment.
Similar to Risk Managment and Insurance all chapters.pptx (20)
ADVICE TO ALL EMPLOYEES
1. Build a home earlier. Be it rural home or urban home. Building a house at 50 is not an achievement. Don't get used to government houses. This comfort is so dangerous. Let all your family have good time in your house.
2. Go home. Don't stick at work all the year. You are not the pillar of your department. If you drop dead today, you will be replaced immediately and operations will continue. Make your family a priority.
3. Don't chase promotions. Master your skills and be excellent at what you do. If they want to promote you, that's fine if they don't, stay positive to your personal.
development.
4. Avoid office or work gossip. Avoid things that tarnish your name or reputation. Don't join the bandwagon that backbites your bosses and colleagues. Stay away from negative gatherings that have only people as their agenda.
5. Don't ever compete with your bosses. You will burn your fingers. Don't compete with your colleagues, you will fry your brain.
6. Ensure you have a side business. Your salary will not sustain your needs in the long run.
7. Save some money. Let it be deducted automatically from your payslip.
8. Borrow a loan to invest in a business or to change a situation not to buy luxury. Buy luxury from your profit.
9. Keep your life,marriage and family private. Let them stay away from your work. This is very important.
10. Be loyal to yourself and believe in your work. Hanging around your boss will alienate you from your colleagues and your boss may finally dump you when he leaves.
11. Retire early. The best way to plan for your exit was when you received the employment letter. The other best time is today. By 40 to 50 be out.
12. Join work welfare and be an active member always. It will help you a lot when any eventuality occurs.
13.Take leave days utilize them by developing yr future home or projects..usually what you do during yr leave days is a reflection of how you'll live after retirement..If it means you spend it all holding a remote control watching series on Zee world, expect nothing different after retirement.
14. Start a project whilst still serving or working. Let your project run whilst at work and if it doesn't do well, start another one till it's running viably. When your project is viably running then retire to manage your business. Most people or pensioners fail in life because they retire to start a project instead of retiring to run a project.
15. Pension money is not for starting a project or buy a stand or build a house but it's money for your upkeep or to maintain yourself in good health. Pension money is not for paying school fees or marrying a young wife but to look after yourself.
16. Always remember, when you retire never be a case study for living a miserable life after retirement but be a role model for colleagues to think of retiring too.
17. Don't retire just because you are finished or you are now a burden to the company and just wait for your day t
Entrepreneurship Short Note.pptx for Business Studentsetebarkhmichale
Success demands these 6 things..
(The Secret Formula)
1. Hard Work
Don't believe in luck, believe in hard work.
Stop trying to rush the process or searching for a shortcut.
There is none.
2. Patience
If you are losing the patience, you are losing the battle.
First nothing happens, then it happens slowly and suddenly all at once.
Most people give up at stage one.
3. Sacrifice
If you don't sacrifice for what you want, then what you want becomes the sacrifice.
Everything has its price. The question is: Are you ready to pay it for the life you desire?
4. Consistency
Consistency is what transforms average into excellence.
Without consistency, you will never achieve greater success.
5. Discipline
Motivation gets you going, but discipline keeps you growing.
There will be days when you don't “feel” like doing it.
You have to push through those days regardless of how you feel.
6. Self Confidence
Confidence is, I'll be fine if they don't like me.
GOD BLESS YOU🙏❤️
EYA Oliver Uchenna®️
Success demands these 6 things..
(The Secret Formula)
1. Hard Work
Don't believe in luck, believe in hard work.
Stop trying to rush the process or searching for a shortcut.
There is none.
2. Patience
If you are losing the patience, you are losing the battle.
First nothing happens, then it happens slowly and suddenly all at once.
Most people give up at stage one.
3. Sacrifice
If you don't sacrifice for what you want, then what you want becomes the sacrifice.
Everything has its price. The question is: Are you ready to pay it for the life you desire?
4. Consistency
Consistency is what transforms average into excellence.
Without consistency, you will never achieve greater success.
5. Discipline
Motivation gets you going, but discipline keeps you growing.
There will be days when you don't “feel” like doing it.
You have to push through those days regardless of how you feel.
6. Self Confidence
Confidence is, I'll be fine if they don't like me.
GOD BLESS YOU🙏❤️
EYA Oliver Uchenna®️
Success demands these 6 things..
(The Secret Formula)
1. Hard Work
Don't believe in luck, believe in hard work.
Stop trying to rush the process or searching for a shortcut.
There is none.
2. Patience
If you are losing the patience, you are losing the battle.
First nothing happens, then it happens slowly and suddenly all at once.
Most people give up at stage one.
3. Sacrifice
If you don't sacrifice for what you want, then what you want becomes the sacrifice.
Everything has its price. The question is: Are you ready to pay it for the life you desire?
4. Consistency
Consistency is what transforms average into excellence.
Without consistency, you will never achieve greater success.
5. Discipline
Motivation gets you going, but discipline keeps you growing.
There will be days when you don't “feel” like doing it.
You have to push through those days regardless of how you feel.
Register
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Digital Lendings Relationship Officer
Expired 5 months ago!
Related Jobs
Banking and Insurance Jobs Senior Level Jobs Dashen Bank S.C Jobs
Job Description:
Digital Lendings Relationship Officer
Place of work- Addis Ababa
DB/ Vacancy-0077/23
Job Summary
Digital Lendingss Relationship Officer is Responsible for assisting Digital Lenging Relationship Manager in the process of relationship and partnership creation and management, and product & digital lending business development and enhancement to deliver best quality service to customers with the expectation of increasing profitability and/or reducing operational expense and risks of different nature, ensure health-check of the different digital value propositions, compliance to regulatory directions, take proactive measures to identify early warning signals to keep management informed.
Job Requirements:
Academic & Professional Qualification
Economics, and/or related fields is an added advantage.
Bachelor Degree in Accounting, Economics, Business Administration, Management, Marketing Managerment, and/or related fields.
Master’s in Accounting, Economics, Business Administration, Management, Marketing Management, and/or related fields is an added advantage.
Experience
Minimum of 4 (four) years relevant work experience on similar roles.
Behavioral & Leadership Competency
Leadership and people management including performance management, coaching & mentoring.
Demonstrated business acumen - able to create strategy and actions that impact business success.
High-level interpersonal and cross-cultural skills, including ability to build consensus, alliances and collaborative relationships with sensitivity to diversity/inclusion.
Creativity and innovation skills, with ability to use technology and other modern tools to drive decision making and implementation.
Strategic thinking and decision making- ability to consider emerging trends/developments and long-term opportunities for Dashen Bank.
Professionalism and integrity in line with Dashen Bank values.
High-level oral and written communication skills.
Critical and analytical thinking and problem solving skills
Personal motivation and drive exhibited through commitment to hard work, continuous improvement and achievement of goals.
Good customer relationship management skills (internal and external customers)
Risk awareness and focus- demonstrates understanding of risk management practices, standards and regulatory requirements
Effective stakeholder management.
Required Technical Competency
Experience working cross-functionally to develop new ideas and
Register
Navigation
Jobs
Latest Jobs
Login
Register
Courses
Advice
Employers
Copyright 2023. All Rights Reserved.
Get In Touch
Snap Plaza 8th floor, Bole Next to The Millennium hall. Addis Ababa, Ethiopia
info@ethiojobs.net
+251-116-67-33-24
+251-924-91-08-47
Get Social
Facebook
Twitter
LinkedIn
YouTube
Telegram
Links
About Us
Contact Us
FAQs
Copyright 2023. All Rights Reserved.
Digital Lendings Relationship Officer
Expired 5 months ago!
Related Jobs
Banking and Insurance Jobs Senior Level Jobs Dashen Bank S.C Jobs
Job Description:
Digital Lendings Relationship Officer
Place of work- Addis Ababa
DB/ Vacancy-0077/23
Job Summary
Digital Lendingss Relationship Officer is Responsible for assisting Digital Lenging Relationship Manager in the process of relationship and partnership creation and management, and product & digital lending business development and enhancement to deliver best quality service to customers with the expectation of increasing profitability and/or reducing operational expense and risks of different nature, ensure health-check of the different digital value propositions, compliance to regulatory directions, take proactive measures to identify early warning signals to keep management informed.
Job Requirements:
Academic & Professional Qualification
Economics, and/or related fields is an added advantage.
Bachelor Degree in Accounting, Economics, Business Administration, Management, Marketing Managerment, and/or related fields.
Master’s in Accounting, Economics, Business Administration, Management, Marketing Management, and/or related fields is an added advantage.
Experience
Minimum of 4 (four) years relevant work experience on similar roles.
Behavioral & Leadership Competency
Leadership and people management including performance management, coaching & mentoring.
Demonstrated business acumen - able to create strategy and actions that impact business success.
High-level interpersonal and cross-cultural skills, including ability to build consensus, alliances and collaborative relationships with sensitivity to diversity/inclusion.
Creativity and innovation skills, with ability to use technology and other modern tools to drive decision making and implementation.
Strategic thinking and decision making- ability to consider emerging trends/developments and long-term opportunities for Dashen Bank.
Professionalism and integrity in line with Dashen Bank values.
High-level oral and written communication skills.
Critical and analytical thinking and problem solving skills
Personal motivation and drive exhibited through commitment to hard work, continuous improvement and achievement of goals.
Good customer relationship management skills (internal and external customers)
Risk awareness and focus- demonstrates understanding of risk management practices, standards and regulatory requirements
Effective stakeholder management.
Required Technical Competency
Experience working cross-functionally to develop new ideas and
Financial management for Business CoursesPPT.pptetebarkhmichale
The Commercial Bank of Ethiopia has been becoming a leader, pioneer, and role model for the country's financial industry, especially the banking industry. Currently, it aspires “to become a world-class commercial bank, financially driving Ethiopia’s future'', and it is working to provide banking services tailored to the needs of its esteemed customers. The bank has carried out a comprehensive assessment and strategy design work and drawn a business reform road map. Based on the assessment, reforms and organizational restructurings have been done. Accordingly, the bank has introduced a new customer-centric business model and undertaken amendments to its organizational structure in order to render effective service based on customer segments. Following this, new divisions and departments were established; the Micro Business Banking under the Wholesale Banking Division was established to address the banking needs of all individual and non-individual businesses.
The main objective of the department was to provide financing access to microbusiness customers. Since the number of microbusiness customers is very high, using digital channels has been considered an essential alternative. Due to this, the department has been assigned to provide digital micro saving and lending, which is the most efficient and effective form.
The strategic initiatives planned to achieve the department’s objectives have been successfully implemented, and the DMSL service is under a pilot test. However, there have been some problems that could be fixed only by restructuring the department, and the current structure is not conducive to providing successful digital loans. The digital lending being in a pilot test is also not going according to plan, and its performance status is not satisfactory. Due to those situations, I have been initiated to come up with this concept note, and I hope you will enrich and work on it to provide a successful solution.
2. Background
Technological advancements have significantly transformed the way services are delivered, leading to a shift in customer expectations and demands. Financial services are now focusing on providing seamless digital banking transactions and personalized engagements. Digital lending platforms are making lending easier, more accessible, and more efficient. Commercial Bank of Ethiopia (CBE) is leading in achieving national financial inclusion by establishing dedicated departments and implementing initiatives to improve the customer experience. This concept note proposes a structural adjustment for the recently established department called micro business banking department established under the wholesale banking division. The detail background leads me to this initiative is detailed as follow.
2.1. Micro Business Banking
CBE has established a department called Micro Business dedicated to microenterprise customers. According to the customer segmentation procedure of the bank, “Micro Business Banking” means a banking s
English Email Writing byme- at work place ppt pptxetebarkhmichale
Understanding the Structure of a Successful Digital Credit Provider in Kenya.
Kenya's financial services sector is embracing FinTech, with digital credit providers like Tala, Zenka Digital, and Ksmart leveraging AI, machine learning, robotic process automation, data analytics, and blockchain. A fintech in the lending space may cater to various kinds of product offerings, which can be broadly categorized as follows:
1. Consumer loans
2. Personal loans
3. Business or MSME (Micro, Small, and Medium Enterprise) loans
1. What are the critical back-end tech solutions/integrations needed?
1. Customer acquisition
2. Application, website, and/or app
3. Verification APIs
4. Credit underwriting/ Scorecards/Fraud detection
5. Credit Bureau Integration
6. Automatic analysis of qualitative factors
7. Disbursement/Repayment
8. Collection/Recovery
9. Loan Management System (LMS)/Accounting
10. Legal
Let's delve deeper into each of the above for a deeper understanding.
1.1. Customer acquisition
Drawing in customers is a top priority for any fintech. There are various methods or sources through which a DCP acquires its customers. The customer acquisition process may differ for each lending institution depending on their product, the area in which they operate, the customer profile, etc. To attract potential borrowers, leverage digital marketing strategies, social media, and partnerships with relevant platforms. Focus on providing a seamless user experience to make your platform stand out from existing or traditional lenders.
1.2. Application, website, app or USSD
Develop a user-friendly and intuitive digital platform for borrowers to apply for loans easily. Mobile apps have become increasingly popular in Fintech, allowing users to access services conveniently. Consider application login through Gmail, social media, and so on to enable the user to seamlessly log in to the mobile application for the website without creating any new login credentials. At the same time, this also provides the Fintech with the profile of the loan applicant. Do you need customers to upload documents for KYC/AML verification? Ensure your platform allows uploading these documents and has back-end integration to verify the documents' authenticity. Consider using the different available Optical Recognition Technologies (OCR), which should be able to read the data from the documents provided and create the text. For verification and authentication of the information in the documents, the Fintech can develop its software and subscribe to various services or do an API integration with a service provider who can provide such services. The main goal is to give users a comfortable journey, so they must manually type minimum information.
1.3. Verifying APIs
Integrated person’s registry system (IPRS) is Kenya'sKenya's reputed organization providing APIs for KYC, Identity, etc., suitable for all lending businesses. The IPRS system aims to consolidate population information into a
Introduction
In life, there are universal laws that govern everything we do. These laws are so perfect that if you were to align yourself with them, you could have so much prosperity that it would be coming out of your ears. This is because God created the universe in the image and likeness of him. It is failure to follow the universal laws that causes one to fail. The laws that were created consisted of the following: ·
Law of Gratitude: The Law of Gratitude states that you must show gratitude for what you have. By having gratitude, you speed your growth and success faster than you normally would. This is because if you appreciate the things you have, even if they are small things, you are open to receiving more.
Law of Attraction: The Law of Attraction states that if you focus your attention on something long enough you will get it. It all starts in the mind. You think of something and when you think of it, you manifest that in your life. This could be a mental picture of a check or actual cash, but you think about it with an image.
Law of Karma: the Law of Karma states that if you go out and do something bad, it will come back to you with something bad. If you do well for others, good things happen to you. The principle here is to know you can create good or bad through your actions. There will always be an effect no matter what.
Law of Love: the Law of Love states that love is more than emotion or feeling; it is energy. It has substance and can be felt. Love is also considered acceptance of oneself or others. This means that no matter what you do in life if you do not approach or leave the situation out of love, it won't work.
Law of Allowing: The Law of Allowing states that for us to get what we want, we must be receptive to it. We can't merely say to the Universe that we want something if we don't allow ourselves to receive it. This will defeat our purpose for wanting it in the first place.
Law of Vibration: the Law of Vibration states that if you wish on something and use your thoughts to visualize it, you are halfway there to get it. To complete the cycle you must use the Law of Vibration to feel part of what you want. Do this and you'll have anything you want in life.
For everything to function properly there has to be structure. Without structure, our world, or universe, would be in utter chaos. Successful people understand universal laws and apply them daily. They may not acknowledge that to you, but they do follow the laws. There is a higher power and this higher power controls the universe and what we get out of it. People who know this, but wish to direct their own lives, follow the reasons. Successful people don't sit around and say "I'll try," they say yes and act on it.
Chapter - 1
The Law of Attraction
The law of attraction is the most powerful force in the universe. If you work against it, it can only bring you pain and misery. Successful people know this but have kept it hidden from the lower class for centuries because th
Power of Personal Appearance
Image management is the ongoing process of evaluating and controlling the impact of your appearance and the resulting response on you and others.
The concept of image management applies to anyone who has ever needed to improve self-image, self-esteem, self-confidence, capability and credibility. It applies to anyone who has ever wanted to get an idea across to someone else, to influence opinion or action is it in the home, school, church, community or business setting. It is creating an authentic, appropriate, attractive, and affordable image. Intelligence, knowledge, ability, initiative, and effort are vital to success of any kind, but regardless of whom you are, how old, and what your role or goal, ongoing image management can give you the personal/professional presence you need.
As an individual living and working in a highly complex and competitive society, you must recognize and understand the impact of your appearance as it communicates first to you and then to others. What you wear and the way you look affects:
1. The Way You Think
You can’t afford to think negatively about yourself due to some aspect of your appearance. When you appear authentic, attractive, and appropriate, you think more positively about yourself, your situation, and others.
2. The Way You Feel
You can’t afford to feel depressed, unproductive, uncomfortable, antagonistic, argumentative, self-conscious, inferior, or full of self-doubt. A positive personal appearance is a fast, effective way to boost self-confidence and overcome anxiety regarding ability or acceptance. When you appear attractively dressed and groomed, personally authentic, and appropriate for the occasion, you feel more comfortable, confident, capable, cooperative and productive.
3. The Way You Act or Behave
You can’t afford to act awkward, insecure, submissive, out-of-place, or out-of-order. Nor can you afford to act defensive, arrogant, aggressive, affected, superior, or conceited. A positive personal appearance is one of the most effective ways to improve behavior and enhance performance level or productivity. When you appear attractively dressed and groomed, personally authentic, and appropriate for the occasion, you act more secure, at ease, mannerly, competent, and naturally able to do your best.
4. The Way Others React and Respond to You
Your appearance is the one personal characteristic that is immediately obvious and accessible to others. You can’t hide it. Your appearance makes a strong statement about your personality, values, attitudes, interests, knowledge, abilities, roles, and goals. You can’t afford to be seen as disrespectful, antagonistic, affected, scatterbrained, irresponsible, ineffective, or unproductive. You can’t afford to create a negative impression or to build barriers between you and others because of unattractive, inappropriate, distracting, or offensive appearance.
When you appear attractively dressed and groomed, personally authentic, and ap
Email Writting Guideline Follow step by step PPT.pptxetebarkhmichale
Digital credit process and the steps to obtain an instant loan
𝙰𝚕𝚎𝚖𝚊𝚢𝚎𝚑𝚞 𝚂𝚒𝚖𝚎𝚗𝚎𝚑
𝙰𝚕𝚎𝚖𝚊𝚢𝚎𝚑𝚞 𝚂𝚒𝚖𝚎𝚗𝚎𝚑
𝙰𝚕𝚎𝚖𝚊𝚢𝚎𝚑𝚞 𝚂𝚒𝚖𝚎𝚗𝚎𝚑
Digital Marketing Manager @ Bank of Abyssinia | Marketing Management MA
Published Jul 9, 2023
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Digital Lending has made it possible for many people to access the funds they need quickly and securely, without having to worry about paperwork or trips to physical banks and collateral. With competitive rates, flexible repayment plans, and fast disbursement of funds – digital lending is changing the way we view financing.
Digital lending is the process of obtaining a loan online through digital channels such as mobile apps and websites. And, this process has been gaining popularity in recent years in our country due to its convenience and ease of use. There are noteworthy examples of this. One is Michu, a platform by the Cooperative Bank of Oromia that offers credit based on a borrower's score. It specifically provided for micro, small, and medium enterprises (MSMEs). Another is Telebirr's different types of microloan services offered in collaboration with Dashen Bank. This service allows users to obtain small loans without needing collateral, using their credit score as a basis. Additionally, the Bank of Abyssinia's different Apollo instant digital loans, which is set to launch this month.
The digital credit process typically consists of the following major activities. And, the borrower will need to research and compare the existing digital lending platforms to find one that suits his needs. He should consider factors such as service charges, interest rates, loan terms, eligibility criteria, and customer reviews.
Create an account: Once the borrower has selected a provider, he will need to create an account on their platform. This typically involves providing basic personal information (name, address, phone number, email) and setting up a username and password.
Loan Application: Once he has chosen a lender, the borrower will need to fill out an online application form. This typically involves providing personal information (like name and address), financial information (such as income, employment status, and outstanding debts), and the purpose of the loan.
Document Submission: After filling out the application, the borrower will usually need to submit supporting documents. These might include proof of identity, proof of income (like pay stubs or tax returns), and bank statements. Thanks to digital technology, these documents can often be uploaded directly to the platform.
Consent to a credit check: Most digital credit providers will perform a credit check as part of the application process. By agreeing to a credit check, the borrower needs to give the provider permission to access his credit history and score, which will be used to assess his creditworthiness.
Review the loan terms: If the application is approved, the provider will present the borrower with a loan offer,
Digital Lending Platform: The only guide you’ll ever need(https://moba.finance/what-is-digital-lending-platform/)
New changes in rates, regulations, competitions, and new technologies all the more increase this pressure of digital lending. Banks need a new lending technology to rapidly adapt to market shifts and stay ahead of competitors.
Fortunately, a Digital Lending Platform can help banks address all those challenges.
What is Digital Lending Platform
A Digital Lending Platform automates the journey from application to disbursement for any lending product—be it mortgages, consumer loans, or deposit accounts.
With Digital Lending Platforms, banks can acquire and assess customers faster while enhancing back-office processes and reducing costs. It helps banks solve these challenges by delivering an all-in-one place to manage individual customers’ lending journey—from application, underwriting, to disbursement and collection.
In today’s everything-digital world, customers are so used to the seamless and intuitive shopping experience from Momo, Shopee, and Grab. They expect the same thing from lending. Customers demand the ability to apply for loans and are disbursed online via digital platforms, without having to visit the physical branch.
Below are some of the capabilities of a Digital Lending Platform:
Seamless customer experiences from application to collection
With the Digital Lending Platform, your potential lenders can use any device—be it the mobile phone, tablet, or desktop—to apply for loans and complete the follow-up tasks to receive the disbursement. The platform supports everything involved in the lending workflow, which involves connecting to their bank account, uploading documents, completing the eKYC process, providing e-signature, … All that is customizable to meet banks’ unique requirements.
Role-based tools for loan officers
A Digital Lending Platform provides each officer with a digital workspace to support lenders. The workspace typically includes interfaces for managing applications, communicating with customers online to complete follow-ups, providing settlement and closing services, and engaging with referral partners.
Automated verification and accuracy checks
By directly connecting to financial data sources, the digital lending platform helps banks eliminate the use of paper. It makes approvals faster and reduces fraud risk by integrating a wide range of eKYC solutions to verify customers’ identity, assets, employment, and income.
Data-driven workflows and automated decisioning
The Digital Lending Platform applies workflows that loan officers can customize themselves without having to write codes. The result is that manual, paper-based processes are reduced significantly. Also, it can automate requests for information, which provides underwriters with accurate and up-to-date loan files to finalize credit decisioning. In addition, the platform can automatically apply bank’s credit policies to unlock more efficiency
Supply Chain Financing to MSMEs businesses PPT.pptetebarkhmichale
Bank
Management
In Africa, women entrepreneurs play a growing role in diversifying production and services. However, they are facing the problem of financial shortage; a recent report by the African Development Bank showed that there is an estimated $42 billion financing gap for female entrepreneurs in Africa. The study demonstrated that women are facing more difficult conditions than men entrepreneurs such as limited access to key resources (including land and credit), the legal and regulatory framework, and the socio-cultural environment. The economy's full potential cannot be realized if half of its population cannot fully contribute, and women have faced many hurdles in the entrepreneurship journey, prompting responsible bodies to devise affirmative solutions.
Ethiopia's female population is 49.8%, but small businesses owned by women only make up 16.5% of the total number of entrepreneurs. Limited access to finance, business networks, development services, and business management skills hinders women entrepreneurs. The government is promoting women entrepreneurs through initiatives like training and financial support. The Commercial Bank of Ethiopia (CBE) is introducing a customer-centric business model to cater to its customers' needs and values. The bank aims to increase the outreach of financial products and services to a larger population, particularly women who own business enterprises. The bank has established a micro business department to adjust itself with the micro business loan demanding customers. These factors can be considered as business drivers and factors enforcing CBE to come up with a gender-specific solution.
The micro business banking department conducted a feasibility study on financing women-owned Micro, Small and Medium Enterprises (MSMEs), and has proposed a collateral-free loan product to bridge the financial gap. In the feasibility study it has been also demonstrated that financing women owned MSMEs could promote financial inclusion and economic empowerment, boosting growth and forming the backbone of vibrant economies.
Therefore, this proposal aims to provide a method how CBE should finance for selected formal women-owned MSMEs in Ethiopia to alleviate their financing gap. It is being proposed that, the CBE shall start the product by making a pilot test for women-owned microbusinesses from Addis Ababa City Administration, with local stakeholders providing data, support, and training for three years. The bank could be benefited from implementing this proposal to attract and retain micro customers, penetrate the micro credit-market, and to adjust itself with the micro customers’ demand.
2. Objectives of the proposal
2.1. General Objectives
This proposal aims to provide customized microloans for women MSMEs to ensure equitable resource allocation and profitability for the bank.
2.2. Specific Objectives
• To play a major role in supporting and promoting women-owned MSMEs through availing useful and affordable loan
1.1. Nature and Definition of Auditing
Different scholars have defined auditing in different ways. For example, Auditing is a process of collection and evaluation of evidence for the purpose of reporting on economic transaction. The other definition of auditing given by the Institute of Chartered Accountants of India, in its publication titled, General Guidelines on Internal Auditing has defined auditing as ‘ a systematic and independent evaluation of data, statements, records, operations and performances ( financial or otherwise) of an enterprise for stated purpose. In any auditing situation, the auditor perceives and recognizes the propositions before him for examination, collects evidence, evaluates the same and on this basis formulates his/her judgment which is communicated through audit report.
As it is cited in Kanal Gupta and Arora A.(1996,p6), Arens and Loebbecke defined auditing as the process by which a complete, independent person accumulates and evaluates evidence about quantifiable information related to specific economic entity for the purpose of determining and reporting on the degree of correspondence between the quantifiable information and established criteria. To sum up, Auditing is the process of verifying the assertions produced by accounting, as to whether they present a true and fair view of the entity's financial position in accordance with accounting standards and GAAP. In other words, auditing seeks to verify whether or not financial records have been properly prepared.
Study Note
The term audit is derived from the Latin term ‘audire,’ which means to hear. In early days an auditor used to listen to the accounts read over by an accountant in order to check them Auditing is as old as accounting.
It was in use in all ancient countries such as Mesopotamia, Greece, Egypt. Rome, U.K. and India. The Vedas contain reference to accounts and auditing.
The original objective of auditing was to detect and prevent errors and frauds and most recently objective of audit shifted to ascertain whether the accounts were true and fair rather than detection of errors and frauds.
Auditing evolved and grew rapidly after the industrial revolution in the 18th century with the growth of the joint stock companies the ownership and management became separate.
The shareholders who were the owners needed a report from an independent expert on the accounts of the company managed by the board of directors who were the employees.
1.2. Historical Development of Auditing
The development of auditing is closely linked to the development of accounting. In the early stage of civilization, the number of transaction was usually so small that able to record the transactions himself. However, with the growth of civilization and consequential growth in volume and complexity of transactions, it becomes necessary to entrust the job of recording the transactions to other persons. The trend started with maintenance of accounts to empires by public officials
Today’s complex global challenges require partnerships across sectors and societies to achieve equitable and sustainable results for stakeholders and realize strategic objectives stipulated. The United Nations General Assembly defines partnerships as voluntary and collaborative relationship between various parties, both public and non-public, in which all participants agree to work together to achieve a common purpose or undertake a specific task and, as mutually agreed, to share risks, responsibilities, resources and benefits.
Alexander et al. (2001) also defines partnership as strategically formed relationship between organizations that involve varying degrees of resource sharing, joint decision making, and collaborative work to address common interests, and achieve shared goals. While there are many theoretically recognized benefits and advantages to partnerships, the answer to why one seeks to establish partnership is relatively simple. The presumption is that, there is added value in working with other organizations .
Strategically, the Commercial Bank of Ethiopia (CBE) has adopted partnering with developmental organs (Regional Organs) and collaboration institutions strategic response in crafting both local and foreign currency resource mobilization strategies.
A strategic partnering for CBE is nothing but it is a form of an agreement with government/public organs/Institutions under the theme of mutual growth and success. In other words, it is forming a strong relationship with organizations like governmental organs that have shared interest, vision, goal & objectives (development) in order to reach a new market and excel competitors/rivals by providing excellent banking services.
On the other hand, collaboration for CBE shall mean work with another organ in order to achieve or do something that sounds disarmingly simple and coordinating the efforts of employees and resource deployed in providing services and selling of products. Since then, it is struggling to implement these strategic responses accordingly at all level of the bank in the course of resource mobilization tasks.
According to the revised Deposit Mobilization Strategy for 2015/16-2019/20 outlines various strategic responses for deposit mobilization. Strengthening Collaboration with Development Partners is one of them. The document begins by stating the invaluable importance of strategic partners in the success of CBE over the past strategic periods and without the active support of partners, CBE’s deposit mobilization effort would have been very difficult, if not impossible.
But the strategy document stresses that it is not sufficient to sustain their support for long unless the CBE understands their interest or demand and support their area of concern as much as possible.
In 2017, CBE undertook an assessment on the possible areas of engagement with Developmental Partners (DPs) . In this assessment, it is observed that there has been limited understanding about the concep
Concept of Customer Relationship Management (CRM) fINAL PPT.pptetebarkhmichale
• Type and location of collateral;
• Evidence of collateral (title deed No., booklet No, etc);
• The security/collateral coverage (the security-to-loan ratio) is as per the Bank’s requirement;
• The comment of the Bank engineers’ on the property estimation format;
• The completeness of the collateral documentation;
• The strength of the collateral depends on the stability of its realizable value and convertibility to cash as and when desired; and
• Other collateral risks, if any.
5. Management/Owner of the business:
• The number and breakdown of the employees of the business and their educational qualification;
• Comment on the experience and skills of the owner/management of the business;
• Assess the character, competence and capacity of the owner/management of the business;
• The integrity of the borrower;
• The borrower’s past track record;
• The borrower’s response to the Bank’s information requirements;
• The willingness of the borrower to allow the Bank’s authorized personnel to have access to the books of records as well as to the business and the collateral; and
• Management/ownership risk, if any.
6. Key Customers and Suppliers of the Business:
Identify the main customers and suppliers of the business and comment on the terms of the trade for sales and purchases.
7. Credit Exposure
All existing lending exposure, types, terms, repayments and status of the loans within the Bank and other banks clearly indicated.
8. Borrower’s Loan Account Performance
This assessment shall be conducted when the borrower is or was a customer of the CBE. The Lending Officer should clearly indicate the utilization of the credit facilities and/or loan repayments of the applicant. (Attach the range of account/Overdraft utilization worksheet).
9. Condition of Fixed Assets
Analyze the age and condition of the fixed assets (buildings, machinery, equipment, etc.) owned by the business;
Identify any plans for asset replacement, or expansion in the next years.
10. Financial Statement Analysis
The Lending Officers must assess the repayment capacity of a business to meet its loan and identify the source of repayment. The Lending Officer must also have done a ratio analysis in order to assess the customer ability to repay his/her/its debt.
The Lending Officer must analyze and interpret the cash-flow and the financial ratios from the historical financial accounts of the business. If the Lending Officer has a computer, he/she must have prepare the CBE Financial Analysis Spreadsheet and attached therewith.
Ratios are the main tools of financial analysis. There are an endless number of ratios that could be established between the figures in a set of financial statements. Nonetheless, the Lending Officer must calculate at least the following ratios that will give useful information to the Bank. The Lending Officer must also compare each ratio from the previous periods. The reason for any major changes from one period to another must be ascertained t
Starting A Foundation Guidance for Advisors.pptetebarkhmichale
Money Market and Capital Market: Difference
Both the money market and the capital market are the two different types of the financial markets where in the money market is used for the purpose of short term borrowing and lending whereas the capital market is used for the long term assets i.e., the assets which have the maturity of more than one year.
Money markets are unorganized markets where banks, financial institutions, money dealers and brokers trade in financial instruments for a short period of time. They trade in short-term debt instruments like trade credit, commercial paper, certificate of deposit, T bills, etc. which are highly liquid and can be redeemed in the period less than 1 year . It helps the business and industries with working capital requirements.
The capital market is a type of financial market where financial products like stocks, bonds, debentures are traded for a long duration of time. They serve the purpose of long-term financing and long-term capital requirement. The Capital mark
Money Market and Capital Market: Difference
Both the money market and the capital market are the two different types of the financial markets where in the money market is used for the purpose of short term borrowing and lending whereas the capital market is used for the long term assets i.e., the assets which have the maturity of more than one year.
Money markets are unorganized markets where banks, financial institutions, money dealers and brokers trade in financial instruments for a short period of time. They trade in short-term debt instruments like trade credit, commercial paper, certificate of deposit, T bills, etc. which are highly liquid and can be redeemed in the period less than 1 year . It helps the business and industries with working capital requirements.
The capital market is a type of financial market where financial products like stocks, bonds, debentures are traded for a long duration of time. They serve the purpose of long-term financing and long-term capital requirement. The Capital mark
Money Market and Capital Market: Difference
Both the money market and the capital market are the two different types of the financial markets where in the money market is used for the purpose of short term borrowing and lending whereas the capital market is used for the long term assets i.e., the assets which have the maturity of more than one year.
Money markets are unorganized markets where banks, financial institutions, money dealers and brokers trade in financial instruments for a short period of time. They trade in short-term debt instruments like trade credit, commercial paper, certificate of deposit, T bills, etc. which are highly liquid and can be redeemed in the period less than 1 year . It helps the business and industries with working capital requirements.
The capital market is a type of financial market where financial products like stocks, bonds, debentures are traded for a long duration of time. They serve the purpose
General Principles of Lending:
When a request for a loan is received, it is important to ensure that the borrower has the legal capacity to borrow. The other matters upon which the information should be obtained are: the purpose of advance, the amount involved, the duration of the advance, the sources of repayment, the profitability of transaction, and, where applicable, the security offered. The most fundamental principle of all is that the bank should have confidence in the integrity, competence and continuing credit worthiness of the borrower.
• Know Your Customer:
While entertaining a proposal for advance, the branch has to first ensure compliance with the KYC norms.
• Pre- Sanction Stage:
Obtain/compile the following:
• Bio-data/declaration of assets owned by the borrower and guarantor along with latest income tax/wealth tax assessment copies and compilation of opinion reports.
• Particulars of immediate family members/legal heirs along with their father’s name and age.
• Audited balance sheets for the previous 3 years, estimated balance sheet for the current year and projected balance sheet for the next year.
• Particulars of existing borrowing arrangements and credit reports/no objection letters from existing banks if any.
• It should be followed by independent verification by the branch incumbent.
• Details of associate/group concerns, their borrowing arrangements and their latest balance sheets.
• No objection letter from term loan lender(s) if already financed by them and their permission/willingness to cede pari passu/ second charge on their security.
• The position of term working capital liabilities with various banks/FIs and details thereof viz., Limit, DP, Out standings, Irregularities (if any).
• Conduct a search/obtain a search report from Registrar of Companies to ascertain position of charges created already.
•
• Due Diligence:
• Branch Manager should do adequate Due Diligence before bringing an asset to the Bank’s books. This will avoid NPA.
• Thorough inquiry about the prospective borrower (with other banks, Financial Institutions, etc.) market intelligence, his past track record of performance and repayment of obligations, credit worthiness (Net Worth) must be done.
• Personal visit to his office/place of business will give an idea of his business.
• Processing of Applications:
While processing the applications, the following should be looked into and commented upon in the proposal:
• Due diligence on promoters’ background, their track record of repayment by checking with their existing bankers (NPA status) (any rephasements, any compromise entered into), credit worthiness, market reputation etc.
• Latest RBI defaulters’ list and willful defaulters' list —Company and their Directors.
• Bank’s loan policy.
• Contractual capacity of the borrower regarding borrowing powers/any restrictions on borrowings and names of persons authorized to borrow by verifications of:
• Partnership deed
Power of Personal Appearance
Image management is the ongoing process of evaluating and controlling the impact of your appearance and the resulting response on you and others.
The concept of image management applies to anyone who has ever needed to improve self-image, self-esteem, self-confidence, capability and credibility. It applies to anyone who has ever wanted to get an idea across to someone else, to influence opinion or action is it in the home, school, church, community or business setting. It is creating an authentic, appropriate, attractive, and affordable image. Intelligence, knowledge, ability, initiative, and effort are vital to success of any kind, but regardless of whom you are, how old, and what your role or goal, ongoing image management can give you the personal/professional presence you need.
As an individual living and working in a highly complex and competitive society, you must recognize and understand the impact of your appearance as it communicates first to you and then to others. What you wear and the way you look affects:
1. The Way You Think
You can’t afford to think negatively about yourself due to some aspect of your appearance. When you appear authentic, attractive, and appropriate, you think more positively about yourself, your situation, and others.
2. The Way You Feel
You can’t afford to feel depressed, unproductive, uncomfortable, antagonistic, argumentative, self-conscious, inferior, or full of self-doubt. A positive personal appearance is a fast, effective way to boost self-confidence and overcome anxiety regarding ability or acceptance. When you appear attractively dressed and groomed, personally authentic, and appropriate for the occasion, you feel more comfortable, confident, capable, cooperative and productive.
3. The Way You Act or Behave
You can’t afford to act awkward, insecure, submissive, out-of-place, or out-of-order. Nor can you afford to act defensive, arrogant, aggressive, affected, superior, or conceited. A positive personal appearance is one of the most effective ways to improve behavior and enhance performance level or productivity. When you appear attractively dressed and groomed, personally authentic, and appropriate for the occasion, you act more secure, at ease, mannerly, competent, and naturally able to do your best.
4. The Way Others React and Respond to You
Your appearance is the one personal characteristic that is immediately obvious and accessible to others. You can’t hide it. Your appearance makes a strong statement about your personality, values, attitudes, interests, knowledge, abilities, roles, and goals. You can’t afford to be seen as disrespectful, antagonistic, affected, scatterbrained, irresponsible, ineffective, or unproductive. You can’t afford to create a negative impression or to build barriers between you and others because of unattractive, inappropriate, distracting, or offensive appearance.
When you appear attractively dressed and groomed, personally authentic, and ap
Economy of money, banking, and finance EuroMAC_Ch11.pptxetebarkhmichale
The 5 C's of leadership are:
1. Communication: Effective leaders are skilled communicators who can convey their ideas clearly, listen actively, and foster open dialogue among team members.
2. Confidence: Strong leaders have confidence in themselves, their abilities, and their decisions. They inspire trust and instill confidence in others through their demeanor and actions.
3. Commitment: Leaders demonstrate commitment to their goals, vision, and values. They are dedicated to the success of their team or organization and are willing to put in the necessary effort and resources to achieve it.
4. Creativity: Successful leaders are innovative and adaptable, able to think outside the box and find creative solutions to challenges. They encourage creativity and embrace new ideas and perspectives.
5. Character: Leaders with strong character possess integrity, honesty, and ethical behavior. They lead by example, earning respect and trust from their followers through their actions and moral principles.The 5 C's of leadership are:
1. Communication: Effective leaders are skilled communicators who can convey their ideas clearly, listen actively, and foster open dialogue among team members.
2. Confidence: Strong leaders have confidence in themselves, their abilities, and their decisions. They inspire trust and instill confidence in others through their demeanor and actions.
3. Commitment: Leaders demonstrate commitment to their goals, vision, and values. They are dedicated to the success of their team or organization and are willing to put in the necessary effort and resources to achieve it.
4. Creativity: Successful leaders are innovative and adaptable, able to think outside the box and find creative solutions to challenges. They encourage creativity and embrace new ideas and perspectives.
5. Character: Leaders with strong character possess integrity, honesty, and ethical behavior. They lead by example, earning respect and trust from their followers through their actions and moral principles.
CRM 101: What is CRM?
This is a simple definition of CRM.
Customer relationship management (CRM) is a technology for managing all your company’s relationships and interactions with customers and potential customers. The goal is simple: Improve business relationships to grow your business. A CRM system helps companies stay connected to customers, streamline processes, and improve profitability.
When people talk about CRM, they are usually referring to a CRM system, a tool that helps with contact management, sales management, agent productivity, and more. CRM tools can now be used to manage customer relationships across the entire customer lifecycle, spanning marketing, sales, digital commerce, and customer service interactions.
A CRM solution helps you focus on your organization’s relationships with individual people — including customers, service users, colleagues, or suppliers — throughout your lifecycle with them, including finding new customers, winning their business, and providing support and additional services throughout the relationship.
Who is CRM for?
A CRM system gives everyone — from sales, customer service, business development, recruiting, marketing, or any other line of business — a better way to manage the external interactions and relationships that drive success. A CRM tool lets you store customer and prospect contact information, identify sales opportunities, record service issues, and manage marketing campaigns, all in one central location — and make information about every customer interaction available to anyone at your company who might need it.
With visibility and easy access to data, it's easier to collaborate and increase productivity. Everyone in your company can see how customers have been communicated with, what they’ve bought, when they last purchased, what they paid, and so much more. CRM can help companies of all sizes drive business growth, and it can be especially beneficial to a small business, where teams often need to find ways to do more with less.
Here’s why CRM matters to your business.
CRM is the largest and fastest-growing enterprise application software category, and worldwide spending on CRM is expected to reach USD $114.4 billion by the year 2027. If your business is going to last, you need a strategy for the future that’s centered around your customers, and enabled by the right technology. You have targets for sales, business objectives, and profitability. But getting up-to-date, reliable information on your progress can be tricky. How do you translate the many streams of data coming in from sales, customer service, marketing, and social media monitoring into useful business information?
A CRM system can give you a clear overview of your customers. You can see everything in one place — a simple, customizable dashboard that can tell you a customer’s previous history with you, the status of their orders, any outstanding customer service issues, and more. You can even choose to include information
Storytelling is an incredibly valuable tool to share data and information. To get the most impact from stories there are a number of key ingredients. These are based on science and human nature. Using these elements in a story you can deliver information impactfully, ensure action and drive change.
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[To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
This PowerPoint compilation offers a comprehensive overview of 20 leading innovation management frameworks and methodologies, selected for their broad applicability across various industries and organizational contexts. These frameworks are valuable resources for a wide range of users, including business professionals, educators, and consultants.
Each framework is presented with visually engaging diagrams and templates, ensuring the content is both informative and appealing. While this compilation is thorough, please note that the slides are intended as supplementary resources and may not be sufficient for standalone instructional purposes.
This compilation is ideal for anyone looking to enhance their understanding of innovation management and drive meaningful change within their organization. Whether you aim to improve product development processes, enhance customer experiences, or drive digital transformation, these frameworks offer valuable insights and tools to help you achieve your goals.
INCLUDED FRAMEWORKS/MODELS:
1. Stanford’s Design Thinking
2. IDEO’s Human-Centered Design
3. Strategyzer’s Business Model Innovation
4. Lean Startup Methodology
5. Agile Innovation Framework
6. Doblin’s Ten Types of Innovation
7. McKinsey’s Three Horizons of Growth
8. Customer Journey Map
9. Christensen’s Disruptive Innovation Theory
10. Blue Ocean Strategy
11. Strategyn’s Jobs-To-Be-Done (JTBD) Framework with Job Map
12. Design Sprint Framework
13. The Double Diamond
14. Lean Six Sigma DMAIC
15. TRIZ Problem-Solving Framework
16. Edward de Bono’s Six Thinking Hats
17. Stage-Gate Model
18. Toyota’s Six Steps of Kaizen
19. Microsoft’s Digital Transformation Framework
20. Design for Six Sigma (DFSS)
To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations
HOW TO START UP A COMPANY A STEP-BY-STEP GUIDE.pdf46adnanshahzad
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Introduction
Have you ever dreamed of turning your innovative idea into a thriving business? Starting a company involves numerous steps and decisions, but don't worry—we're here to help. Whether you're exploring how to start a startup company or wondering how to start up a small business, this guide will walk you through the process, step by step.
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Building Your Employer Brand with Social MediaLuanWise
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In this keynote, Luan Wise will provide invaluable insights to elevate your employer brand on social media platforms including LinkedIn, Facebook, Instagram, X (formerly Twitter) and TikTok. You'll learn how compelling content can authentically showcase your company culture, values, and employee experiences to support your talent acquisition and retention objectives. Additionally, you'll understand the power of employee advocacy to amplify reach and engagement – helping to position your organization as an employer of choice in today's competitive talent landscape.
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How to Implement a Real Estate CRM SoftwareSalesTown
To implement a CRM for real estate, set clear goals, choose a CRM with key real estate features, and customize it to your needs. Migrate your data, train your team, and use automation to save time. Monitor performance, ensure data security, and use the CRM to enhance marketing. Regularly check its effectiveness to improve your business.
2. Topics to Be Covered
Meaning of Risk
Risk vs Uncertainty
Risk vs Probability
Risk, Peril and Hazard
Classification of Risk
Risk Related To Business Activities
Burden of Risks on Society
3. 1.1Meaning of Risk
There is no one universal and comprehensive definition of risk that exists so far
Risk traditionally has been defined in terms of uncertainty, concerning the occurrence of a
loss.
Consider the following definitions:
o Risk is the possibility of an unfortunate occurrence.
o Risk is a combination of hazards.
o Risk is unpredictability – the tendency that actual results may differ from predicted
results.
o Risk is uncertainty of loss.
o Risk is possibility of loss
4. Common Elements In The
Definitions:-
Indeterminacy:- means the outcome must be in question
o When risk is said to exist there must be at least two possible outcomes
o If we know for certain that a loss occurs, there is no risk.
Loss:- at least one of the possible outcomes is undesirable may be loss.
*IF THE OUTCOME IS ONE AND KNOWN IN ADVANCE
THEREFORE, THERE IS NO RISK
5. 1.2 Risks versus Uncertainty
Uncertainty
Doubt about our ability to predict the future outcome
of current actions.
Arises when an individual perceives that outcomes
cannot be known with certainty
Describes a state of mind.
The level and type of information on the nature of a
risky activity have an important effect on uncertainty.
6. 1.3 Risks versus Probability (Chance of Loss)
Risk is the level of possibility that an action lead to a loss/undesirable outcome. But
Probability (Chance of Loss) used to measure /estimation of how likely the event will occur.
Probability has both objective and subjective aspects.
Objective Probability:
Objective probability refers to the long-run relative frequency of an event based on the
assumptions of an infinite number of observations and of no change in the underlying
conditions
Objective probabilities can be determined in two ways:-
Inductive Reasoning
Deductive Reasoning
7. 1.3 Risks versus Probability (Chance of Loss)
Subjective Probability:
Is the individual’s personal estimate of chance of loss
Awide variety of factors can influence subjective probability, including
APerson’s Age
Gender
Intelligence
Education, And
The Use of Alcohol.
8. 1.4 RISK, PERIL AND HAZARD
Peril:
Aperil is a potential event or factor that can cause a loss,
Common perils that cause property damage included fire, lightning,
windstorm, hail, tornadoes, earthquakes, theft and robbery.
Hazard:
Ahazard is a condition that creates or increases the chance of loss.
it is possible for something to be both a peril and hazard
9. 1.4 RISK, PERIL AND
HAZARD…
There are four major types of hazards:
Physical hazard: physical condition that
increases the chance of loss
Moral Hazard: dishonesty or character defects in
an individual that increase the frequency or
severity of loss
Morale Hazard: carelessness or indifference to a
loss because of existence of insurance.
Legal Hazard: characteristics of the legal system
or regulatory environment that increase the
frequency or severity of losses
10. Individual Assignment
(10%)
Conducting a Hazard Assessment
Hazard Assessments
A hazard assessment is a thorough assessment of
the workplace or specific task for the purpose of
identifying what actual and potential hazards exist.
with the intent, where possible, to first eliminate
the hazard or reduce the hazard by using
engineering controls, administrative controls, or
personal protective equipment
11. 1.5 CLASSIFICATION OF RISK
The major
Risk can be classified into several distinct categories.
categories are as follows:
Objective and subjective Risks.
Pure and Speculative Risks.
Fundamental and Particular Risks.
Financial and non-financial
Static and dynamic Risks:
12. 1.5 CLASSIFICATION OF RISK
RVU Finfinnee Campus
Objective Risk (Statistical Risk)
Objective risk is defined as the relative variation of actual loss from
expected loss
Objective risk declines as the number of exposures increases
As the number of exposures increases, can predict future loss
experience more accurately because it can rely on the law of large
number
13. 1.5 CLASSIFICATION OF RISK
RVU Finfinnee Campus
Subjective Risk
uncertainty based on a person’s mental condition or state of mind
High subjective risk often results in conservative and prudent
behavior, while
low subjective risk may result in less conservative behavior.
14. 1.5 CLASSIFICATION OF RISK…
Pure Risks:
a situation in which there are only the possibilities
of loss or not loss.
The only possible outcomes are adverse (loss) and
neutral (no loss)
Examples: premature death, industrial accidents,
terrible medical expenses, and damage to property
from fire, lightning, flood, or earthquake.
The major types of pure risk that can create great
financial insecurity include
Personal Risks.
Property Risks.
Liability Risks.
RVU Finfinnee Campus
15. 1.5 CLASSIFICATION OF RISK…
RVU Finfinnee Campus
Personal Risks. There are four major personal risks.
Risk of premature death.
Risk of insufficient income during retirement.
Risk of poor health.
Risk of unemployment.
16. 1.5 CLASSIFICATION OF RISK…
Property Risks:-
Direct loss: financial loss that results from
the physical damage, destruction, or theft of
the property
Indirect loss or consequential loss is
financial loss that results indirectly from the
occurrence of a direct physical damage or
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17. 1.5 CLASSIFICATION OF RISK…
Liability Risks:-
legally liable if you do something that result in bodily
injury or property damage to someone else
A court of law order
RVU Finfinnee Campus
18. 1.5 CLASSIFICATION
OF RISK…
Speculative Risks:-
a situation in which
either profit or loss is
possible
betting on horse race,
card games, investing in
real estate, and going
into business for your
self.
RVU Finfinnee Campus
19. 1.5 CLASSIFICATION
OF RISK…
Fundamental Risks:-
a risk that affects the
entire economy or large
numbers of persons or
groups within the
economy
rapid inflation, cyclical
unemployment, war,
Hurricanes, tornadoes,
earthquakes, floods, and
forest and grass fires .
RVU Finfinnee Campus
20. 1.5 CLASSIFICATION
OF RISK…
Particular Risks:-
a risk that affects only
individuals and not the
entire community
car thefts, gold thefts,
bank robberies, and
dwelling fires.
RVU Finfinnee Campus
22. 1.5 CLASSIFICATION OF RISK…
Static Risks
loss arises from cause other than change in the economy
occur with a degree of regularity overtime and are
generally predictable
Dynamic Risks
resulting from change in the economy.
Change in the price level, consumer test, income and
output and technology may cause financial loss
less predictable than static risks, as they do not occurred
with any precise degree of regularity
RVU Finfinnee Campus
23. BURDEN OF RISKS ON
SOCIETY
Large emergency fund
Worry and fear
Loss of Certain Goods and Services
RVU Finfinnee Campus
24. RISK RELATED TO BUSINESS
ACTIVITIES
RVU Finfinnee Campus
Business Risk
Financial Risk
Interest Rate Risk
Purchasing Power Risk
Market Risk
25. End of Chapter One
RVU Finfinnee Campus
“THERE IS NO TIME AND PLACE WHICH IS FREE FROM RISK,
AND VERY DIFFICULT TO AVOID IT, SO WHAT WOULD BE
BETTER?”
“MANAGING”
27. Topics to Be Covered
Meaning of Risk Management
Objectives of Risk Management
Steps in the Risk Management Process
RVU Finfinnee Campus
28. 2.1 Meaning of Risk Management
RVU Finfinnee Campus
Asystematic process for:
The identification and evaluation of pure loss exposures faced by an
organization or individual
and for the selection and administration of the most appropriate
technique for treating such exposures
such that negative outcomes are minimized (or avoided altogether),
and positive outcomes are capitalized upon.
29. 2.2 Objectives of Risk Management
Risk management has important objectives.
These objectives can be classified as either
(1) Pre loss Objectives
(2) Post loss Objectives
RVU Finfinnee Campus
30. 2.2 Objectives of Risk Management…
RVU Finfinnee Campus
(1) Pre loss Objectives
Important objectives before a loss occurs include:-
Economy: cost of safety programs, insurance premiums paid, and the
costs associate with different techniques for handling losses
Reduction of Anxiety, and
Meeting Legal Obligations: to install safety devices to protect workers
from harm, to dispose of harmful waste material properly and to label
consumer products appropriately
31. 2.2 Objectives
of Risk
Management…
(2) Post loss Objectives
Important objectives after a loss occurs include:-
Survival
Continued Operation
Stability of Earnings
Continued Growth and
Social Responsibility
RVU Finfinnee Campus
32. 2.3 Steps in the Risk Management Process
The Risk Management Process Involves Four Steps:
Step 1: Identifying potential losses (Risk
Identification)
Step 2:Evaluate Potential losses (Risk Measurement)
Step 3:Select the appropriate Techniques for treating
loss exposure, and
Step 4:Implement and administer the program.
RVU Finfinnee Campus
33. Step 1:
RVU Finfinnee Campus
Identifying potential losses (Risk
Identification)
Identify all major and minor loss exposures
Aloss exposure is any situation where a loss is possible, whether loss
occurs are not
Loss exposures typically classified as (Sources of Risks)
The sources of possible losses are recognized
34. Loss Exposures (Sources of
Risks):
Property Loss Exposures
Business Income Loss Exposures
Human Resources Loss Exposures
Crime Loss Exposures
Employee Benefits Loss Exposures
Foreign Loss Exposures
Liability Loss Exposures
RVU Finfinnee Campus
35. Loss Exposures (Sources of Risks)...
RVU Finfinnee Campus
Employee Benefit Loss Exposures:
Failure to comply with government regulation
Failure to pay promised benefits
Group life and health and retirement plan exposures.
36. Loss Exposures (Sources of Risks)…
RVU Finfinnee Campus
Foreign Loss Exposures:
Acts of terrorism
Plants, business property, inventory
Foreign currency risks
Kidnapping of key persons
Political risks
Liability Risks:
Defective Products
Sexual harassment of employees,
discrimination against employees,
wrongful termination
Misuse of internet and e-mail
transactions
37. Techniques for Identifying Risks:
RVU Finfinnee Campus
1. Loss Exposure Checklists:
2. Risk Analysis Questionnaires
3. The Financial Statement Method:
4. The Flow Chart Method:
5. Contract Analysis:
6. Physical Inspection
7. Interactions With Other Departments:
8. Interactions With Outside Suppliers
And Professional Organizations
9. Statistical Records Of Losses
10. Historical Loss Data
38. Techniques for Identifying Risks:
RVU Finfinnee Campus
Loss Exposure Checklists:
specifies numerous potential sources of loss from destruction of assets
and from legal liability
Some are designed for specific industries
such as manufacturers, retail stores, educational institutions, or religious
organizations
Others focuses on a specific category of exposure
such as real and personal property
39. Step 2:Risk Measurement
(Risk Evaluation)
To evaluate and measure the impact
of losses on the firm.
This step involves on estimation of
the potential frequency and severity
of loss.
Loss frequency
Refers to the probable number
of losses that may occur during
the
some given period.
Loss severity
Refers to the probable size of the
losses that may occur.
RVU Finfinnee Campus
40. Step 2: Risk Measurement (Risk
Evaluation)…
This is important so that the various loss
exposures can be ranked according to their
relative importance
In addition, the relative frequency and
severity of each loss exposure must be
estimated so that the risk manager can
select the most appropriate technique, or
combination of techniques, for treating the
loss exposure.
RVU Finfinnee Campus
41. Guidelines for
Measuring Severity:
Maximum possible loss
- is the worst loss that could possibly happen to
the firm during its lifetime.
- Is the "worst case scenario" and the most
pessimistic view
Maximum probable loss (PML)
- is the worst loss that is likely to happen.
-is inversely proportional to the size of a
structure and the effectiveness of any
protective safeguards.
RVU Finfinnee Campus
42. Step 3: Select the appropriate techniques
for treating loss exposure (Risk Control)
The major techniques to handling risks are:
1. Risk Control
Risk Avoidance
Loss Control
2. Risk Financing Technics
Risk Retention
Insurance
RVU Finfinnee Campus
Non-Insurance Transfer
43. 1. Risk Control
Risk Avoidance
- Avoidance means a certain loss exposure is never
acquired, or
- An existing loss exposure is abandoned
- Conscious decision not to expose oneself or one’s firm
to a particular risk of loss
- To decrease one’s chance of loss to zero
- The firm may not avoid all the losses and may not be
feasible or practical to avoid all the exposures
RVU Finfinnee Campus
44. 1. Risk Control …
RVU Finfinnee Campus
Loss Control
- When losses cannot be avoided, actions may be taken to reduce the
probability of losses or to decrease the cost of losses that do occur
- Involves making conscious decisions regarding the ways those
activities will be conducted
45. 1. Risk Control …
RVU Finfinnee Campus
Loss Control:
-Two methods of classifying loss control involve focus and timing.
Focus of Loss Control:
- Designed primarily to reduce loss frequency
- Referred to as frequency reduction or Loss Prevention
For example:- measurers that reduce truck accidents include driver
examinations, zero tolerance for alcohol or drug abuse and strict
enforcement of safety rules or installation of safety features, placement of
warning labels on dangerous products
46. 1. Risk Control …
RVU Finfinnee Campus
Loss Control:
-Two methods of classifying loss control involve Focus and Timing.
Timing of Loss Control:
Pre-Loss Activities
o Loss Prevention
o Loss Reduction
Concurrent Activities: activities that take place concurrently with losses
Post – Loss Activities: always have a severity-reduction focus
47. Potential Benefits of Loss Control
RVU Finfinnee Campus
Include the reduction or elimination of expense associated with the following:
Repair or replacement of damaged property
Income losses due to destruction of property
Extra costs to maintain operations following a loss.
Adverse liability of judgments
Medical costs to threat injuries
Income losses due to deaths or disabilities
48. Step 3: Select the appropriate techniques
for treating loss exposure (Risk Control)
The major techniques to handling risks are:
1. Risk Control
Risk Avoidance
Loss Control
2. Risk Financing Technics
Risk Retention
Insurance
RVU Finfinnee Campus
Non-Insurance Transfer
49. 2. Risk Financing Technics
RVU Finfinnee Campus
Risk Retention
- The firm’s retains part, or all activities exposed to a loss
- can be effectively used in a risk management program under the
following conditions:
o No other method of treatment is available.
o The worst possible loss is not serious.
o Loss are highly predictable
50. 2. Risk Financing Technics
RVU Finfinnee Campus
Risk Retention
The following methods are typically used for paying losses
o Current Net Income
o Unfunded Reserve
o Funded Reserve
o Credit Line
51. 2. Risk Financing Technics
RVU Finfinnee Campus
Advantages of Risk Retention
o Save Money
o Lower Expenses
o Encourage Loss Prevention
o Increase Cash Flow
52. 2. Risk Financing Technics
RVU Finfinnee Campus
Disadvantages of Risk Retention
o Possible higher losses
o Possible higher expenses
o Possible higher taxes
53. 2. Risk Financing Technics…
RVU Finfinnee Campus
Risk Transfer- Insurance
- A contractual transfer of risk
- five key areas must be emphasized. They are the following;
o Selection of insurance coverage
o Selection of an insurer
o Negotiation of terms
o Dissemination of information concerning insurance coverage
o Periodic review of the insurance program
54. 2. Risk Financing Technics…
RVU Finfinnee Campus
Non-Insurance Transfer
- Transfer of the activity or the property
- Transfer of the probable loss
- Hedging
55. Step 4: Implement and Administer the
Program
Risk Management Policy Statement
Risk Management Manual
Cooperate With Other Department
Periodic Review And Evaluating
RVU Finfinnee Campus
59. 3.1 Definition of Insurance
insurance is contractual agreement between
two parties: the person (Insured) and
Insurance companies. When a person buys
private insurance, she/he is entering into a
contract with the insurer that entitles the
person (Insured) to certain advantages but
also imposes certain responsibilities such as
payment of a premium and satisfying certain
conditions specified in the policy.
RVU Finfinnee Campus
60. 3.1 Definition of
Insurance…
Insurance is the pooling of
accidental losses by transfer
of such risks to insurers,
who agree to indemnify
insureds for such losses, to
provide other financial
benefits on their occurrence,
or to render services
connected with the risk
RVU Finfinnee Campus
61. 3.2 BASIC CHARACTERISTICS OF
INSURANCE
There are four basic characteristic of
insurance
Pooling of Losses
Payment of Accidental Losses
Risk Transfer
Indemnification
RVU Finfinnee Campus
62. 3.2 BASIC CHARACTERISTICS OF
INSURANCE…
Pooling or Sharing of Losses
The spreading of losses incurred by the few over the
entire group, so that in the process, average loss is
substituted for actuarial
pooling implies (1) the sharing of losses by the entire
group, and (2) prediction of future losses with some
accuracy based on the law of large numbers
The larger the risk pool, the more predictable and
stable the premiums can be
RVU Finfinnee Campus
63. 3.2 BASIC CHARACTERISTICS
OF INSURANCE…
Payment of Accidental Losses
An accidental loss is one that the unforeseen
and unexpected and occurs randomly as a
result of chance
RVU Finfinnee Campus
64. 3.2 BASIC CHARACTERISTICS OF
INSURANCE…
Risk Transfer:
Risk transfer means that a pure risk is
transferred from the insured to the insurer,
who typically is in a stronger financial
position to pay the loss than the insured
Pure risk Include the risk of premature
death, poor health, disability, destruction
and theft of property, and liability lawsuits.
RVU Finfinnee Campus
65. 3.2 BASIC CHARACTERISTICS OF
INSURANCE…
Indemnification
Indemnification refers to a situation in which
one party (the “indemnifying” party) agrees or
is required to cover the costs, losses and/or
expenses experienced by another party (the
“indemnified” party)
Indemnification means that the insured is
restored to his or her approximate financial
position prior to the occurrence of the loss
RVU Finfinnee Campus
66. 3.3 REQUIREMENTS (FUNDAMENTALS)
OF AN INSURABLE RISK
Large Number of Exposure Units
Determinable and Measurable Loss
Accidental and Unintentional Loss
No Catastrophic Loss
Calculable Chance of Loss
Economically Feasible Premium
RVU Finfinnee Campus
67. 3.3 REQUIREMENTS (FUNDAMENTALS)
OF AN INSURABLE RISK…
RVU Finfinnee Campus
Large Number of Exposure Units
THE THEORY OF INSURANCE IS BASED ON THE LAW OF LARGE NUMBERS
o Therefore, the prime necessity for a risk to be insurable is that there
must be a sufficiently large number of homogeneous exposures to
combine reasonably predictable losses
o Lost data can be compiled over time, and losses for the group can be
predicted with some accuracy. The loss costs can then be spread over all
insured in the underwriting class.
68. The rich and famous
who insured their body
parts for a fortune
RVU Finfinnee Campus
69. The rich and famous
who insured their body
parts for a fortune
RVU Finfinnee Campus
70. The rich and famous
who insured their body
parts for a fortune
RVU Finfinnee Campus
71. The rich and famous
who insured their body
parts for a fortune
RVU Finfinnee Campus
72. The rich and famous
who insured their body
parts for a fortune
RVU Finfinnee Campus
73. The rich and famous
who insured their body
parts for a fortune
RVU Finfinnee Campus
74. The rich and famous
who insured their body
parts for a fortune
RVU Finfinnee Campus
77. 3.3 REQUIREMENTS (FUNDAMENTALS)
OF AN INSURABLE RISK…
RVU Finfinnee Campus
Determinable and Measurable Loss
o Loss should be definite as to cause, time, place and amount
o The basic purpose of this requirement is to enable an insurer to
determine if the loss is covered under the policy, and if it is
covered, how much should be paid
78. 3.3 REQUIREMENTS (FUNDAMENTALS)
OF AN INSURABLE RISK…
Accidental and Unintentional Loss
The loss should be accidental and
outside the insured’s control
if an individual deliberately causes a
loss, he or she should not be
indemnified for the loss.
.
Haile and Alem International Coffee Farm in Sheka Zone,
Tepi town, Southern Regional State, has suffered a property
loss of more than 28 million birr due to vandalism
RVU Finfinnee Campus
79. 3.3 REQUIREMENTS
(FUNDAMENTALS) OF
AN INSURABLE RISK…
No Catastrophic Loss
loss should not be
catastrophic
large proportion of exposure
units should not incur losses
at the same time.
catastrophic losses
periodically result from the
floods, hurricanes,
tornadoes, earthquakes,
terrorism, forest fires, and
other natural disasters.
RVU Finfinnee Campus
80. Approaches For Meeting The
Problems of Catastrophic Loss
Reinsurance
Shifting of part orall of the insurance originally written by
one insurer to another
Geographically Dispersed Loss Exposures
Insurers can avoid the concentration of risk by dispersing
their coverage over a large geographical area
Catastrophe Bonds (CAT-Bond)
New financial instruments designed to pay for a catastrophic
loss
•.
RVU Finfinnee Campus
81. Approaches For Meeting The
Problems of Catastrophic Loss
Reinsurance
Shifting of part or all of the insurance
originally written by one insurer to
another
RVU Finfinnee Campus
82. Approaches For Meeting The
Problems of Catastrophic Loss
Catastrophe Bonds (CAT-Bond)
• Insurance securitization, creating risk-linked
securities which transfer a specific set of risks
(typically catastrophe and natural disaster risks)
from an issuer or sponsor (ceding company) to
capital market investors.
RVU Finfinnee Campus
83. 3.3 REQUIREMENTS
(FUNDAMENTALS) OF
AN INSURABLE RISK…
Calculable Chance of Loss
The insurer must be able to
calculate both the average
frequency and the average
severity of future losses with
some accuracy
so that a proper premium can be
charged that is sufficient to pay
all claims and expenses and yield
a profit during the policy period
RVU Finfinnee Campus
84. 3.3 REQUIREMENTS
(FUNDAMENTALS) OF
AN INSURABLE RISK…
Economically Feasible
Premium
The insurance premium
is defined as the amount
of money the insurance
company is going to
charge you for the
insurance policy you are
purchasing
The insured must be able
to pay the premium
RVU Finfinnee Campus
85. Individual Assignment (10%)
Explain whether the following risks and perils are insurable
by private insurers:
Ahailstorm that destroys yourroof
The life of an eighty-year-old man
Aflood
Mold
Biological warfare
Dirty bombs
RVU Finfinnee Campus
86. 3.4 INSURANCE vs GAMBLING
COMPARED
RVU Finfinnee Campus
GAMBLING
Creates a new speculative
risk
Socially unproductive
The goal of gambling, is to
come out ahead
INSURANCE
Handling an already existing
pure risk
Always socially productive
The goal of insurance is to
put you in the same financial
position you were in before
the loss
87. 3.4 INSURANCE vs SPECULATION
COMPARED
RVU Finfinnee Campus
SPECULATION
Involves speculative risks
Create a risk deliberately
in the anticipation of
profits.
Involves only risk transfer
Socially unproductive
INSURANCE
Involves pure risks
Accidental risk
Involves risk reduction
Always socially productive
88. BENEFITS OF INSURANCE
Indemnification
Less W
orry and
Fear
Promotes loss
control system
Stimulates
international
trade and
commerce
Source of
Investment
Funds
Encourages
saving Loss Prevention
Enhancement
of Credit
Economic
growth
RVU Finfinnee Campus
94. Functions of Insurers
PRODUCTION
(SELLING)
RVU Finfinnee Campus
The term production refers to the sales and
marketing activities of insurers
Securing enough applicants for insurance to
enable the company to operate
Agents and brokers who sell insurance are
frequently referred to as producers
95. Functions of Insurers
UNDERWRITING
(SELECTION OF RISKS)
RVU Finfinnee Campus
Refers to the process of selecting, classifying, and
pricing applicants for insurance
The underwriter is the person who decides to accept
or reject an application
An insurer must establish an underwriting policy
that specifies acceptable, borderline, and prohibited
business; amounts of insurance to be written
96. Functions of Insurers
UNDERWRITING
(SELECTION OF RISKS)
RVU Finfinnee Campus
The underwriter must obtain as much information
about the subject of the insurance
The four sources from which the underwriter obtains
information are:
o The Application
o Agent or Broker
o Investigations
o Physical Examinations or Inspections
98. Functions of Insurers
The process of predicting future losses and
future expenses, and allocating these costs
among the various classes of insureds
It is the determination of what rates, or
premiums, to charge for insurance
RATE MAKING
RVU Finfinnee Campus
99. Functions of Insurers
The premium is designed to cover two major
costs:
(I) The expected loss and
(II) The cost of doing business
These are known as the pure premium and the
loading, respectively
RATE MAKING
RVU Finfinnee Campus
100. Functions of Insurers
PURE PREMIUM
The pure premium is determined by dividing the
total expected loss by the number of exposures.
Pure premium consists of that part of the
premium necessary to pay for losses and loss
related expenses
RATE MAKING
RVU Finfinnee Campus
101. Functions of Insurers
LOADING
Loading is the part of the premium necessary to
cover other expenses, particularly sales expenses,
and to allow for a profit
RATE MAKING
RVU Finfinnee Campus
103. Functions of Insurers
Provide indemnity to the members of the group who
suffer losses.
This is accomplished on the loss settlement process,
but it is sometimes more complicated than just passing
out money
MANAGING
CLAIMS
RVU Finfinnee Campus
105. Functions of Insurers
INVESTMENT
RVU Finfinnee Campus
Advance payment of premiums gives rise
to funds that must be invested in some
manner
Not all the money collected by the insurer
is to be invested
106. Functions of Insurers
INVESTMENT
Advance payment of premiums gives rise
to funds that must be invested in some
manner
Not all the money collected by the insurer
is to be invested
RVU Finfinnee Campus
109. Contents
Fundamental Principles of Insurance
Contracts
Requirements of Insurance As AContract
Distinct Characteristics of Insurance Contracts
RVU Finfinnee Campus
111. Objectives
RVU Finfinnee Campus
After studying this chapter, the
student has to be able to answer
the following questions:
What are the legal principles of insurance
contract?
Explain every legal principle by example
Explain the difference between
representations, concealment and
warranty.
What are the Distinct legal characteristics
of insurance contract, then explain every
characteristic by example.
Show how insurance contract differs from
the other contracts.
112. LEGAL PRINCIPLES OF INSURANCE
CONTRACTS
Principle of
Indemnity
Principle of
Insurable Interest
Principle of
Subrogation
Principle of
Utmost Good Faith
Principle of
Contribution
Principle of
Proximate Cause
RVU Finfinnee Campus
113. 4.1 PRINCIPLE OF INDEMNITY
RVU Finfinnee Campus
The insurer should not pay more than the actual amount
of the loss
The insured should not profit from a loss
Most property and liability insurance contracts are
contracts of indemnity
A contract of indemnity does not mean that all covered
losses are always paid full
114. PURPOSES
OF
PRINCIPLE
OF
INDEMNITY
To avoid intentional loss
To reduce moral hazard
To prevent the insured from profiting from
loss
To maintain the premium at low-level
RVU Finfinnee Campus
115. 4.1 PRINCIPLE OF INDEMNITY…
RVU Finfinnee Campus
Actual Cash Value (Actual Amount of the Loss):
The concept of actual cash value underlies the principles
of indemnity
The basic method of indemnifying the insured is based on
the actual cash value of the damaged property at the time
loss
116. 4.1 PRINCIPLE OF INDEMNITY…
Actual Cash Value (Actual Amount of
the Loss):
three major methods to determine
actual cash value:
o Replacement cost less depreciation
o Fair Marker Value
o Broad Evidence Rule
RVU Finfinnee Campus
117. Broad Evidence Rule…
Relevant factors include :-
Replacement cost less depreciation
Fair market value
Present value of expected income from the
property
Comparison sales of similar property
Opinions of appraisers and numerous other
factors
RVU Finfinnee Campus
118. Exceptions To The Principle of
Indemnity
The important exceptions to the
principle of indemnity are as follows
oV
alued policy
oV
alued policy laws
oReplacement cost of insurance
oLife Insurance
RVU Finfinnee Campus
119. Exceptions To The
Principle of Indemnity
Avalued policy pays the face amount of
insurance if a total loss occurs
Valued policy law that requires payment
of the face amount of insurance to the
insured if a total loss to real property
occurs from a peril specified in the law
Replacement cost insurance means
there is no deduction for depreciation in
determining the amount paid for a loss
Alife insurance contract is not a contract
of indemnity
, but it is a valued policy that
pays a stated sum to the beneficiary upon
the insured’
s death
RVU Finfinnee Campus
120. 4.2 PRINCIPLE OF INSURABEL
INTEREST
The principle of insurable interest states that the
insured must be in a position to loss financially if
a loss occurs.
The insured may loss financially if the
property is damaged or stolen or destroyed
RVU Finfinnee Campus
121. 4.2 PRINCIPLE OF INSURABEL
INTEREST…
RVU Finfinnee Campus
Insurance contract must be supported by an insurable
interest for the following reasons:-
o To prevent gambling
o To reduce moral hazard
o To measure the amount of the insured’s loss in
property insurance.
122. INSURABEL INTEREST
REQUIREMENTS
Property Insurance:
Ownership of property can support
an insurable interest because
owners of property will loss
financially if their property is
damaged or destroyed
RVU Finfinnee Campus
123. INSURABEL INTEREST
REQUIREMENTS
Liability Insurance:
Potential legal liability can also
support an insurable interest
The insured may be legally liable for
damaged to the third party caused by
negligence
RVU Finfinnee Campus
125. The Insurable Interest To Be Valid Must Be
Recognized As Such Under The Law And Must
Satisfy The Following Conditions:
RVU Finfinnee Campus
There must be some subject matter of insurance such as
physical object or potential liability;
There must be risk to which the subject matter is exposed
The insured must have some legally recognized relationship
with the subject matter insured.
The insured should stand to benefit by the safety of the subject
matter and should incur loss by its destruction or damage; and
The subject matter should be measurable in terms of money.
126. 4.3 PRINCIPLE OF SUBROGATION
Subrogation means substitution of the insurer in place of the insured for the purpose
of claiming indemnity from a third person for a loss covered by insurance
The insurer is therefore entitled to recover from a negligent third party any loss
payments made to the insured
the insured gives to the insurer legal rights to collect damages from the third party
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127. Purposes of Subrogation
To Prevents the
insured from
collecting twice for
the same loss.
To hold the guilty
person responsible
for the loss.
To hold down
insurance rates.
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128. 4.4 PRINCIPEL OF UTMOT GOOD
FAITH (Uberrima fides)
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A higher degree of honest is imposed on both parties to an
insurance contract than is imposed on parties to other
contracts
The principle of utmost good faith is supported by three
important legal doctrines:
o Representations
o Concealments
o Warranty
129. Legal Doctrines implementing The principle
of Utmost Good Faith
Utmost good
faith
Representation
concealment
warranty
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130. The Concept of Utmost Good Faith principle Is
implemented by Three Legal Doctrines:
Representations:
Representations are statements made by the applicant for insurance
the insurance contract is avoidable at the insurer’s option if the
representation is:
• (1) Material,
• (2) False, and
• (3) Relied on by the insurer/Estoppel
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131. The Principle Of Utmost Good Faith Is Supported
By Three Important Legal Doctrines:
Concealment:
Concealment is intentional failure of the applicant for
insurance to reveal a material fact to the insurer
Nondisclosure deliberately withholds material information
from the insurer
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132. The Principle Of Utmost Good Faith Is Supported
By Three Important Legal Doctrines:
Warranty:
A warranty is a statement of fact, or a promise made by the
insured, which is part of the insurance contract
and must be true if the insurer is to be liable under the
contract
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133. 4.5 PRINCIPLE OF CONTRIBUTION
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Contribution is the right of an insurer who has paid under
a policy, to call upon other insurers equally or otherwise
liable for the same loss to contribute to the payment
The contribution may be a proportional amount based on
the sum insured under the respective insurers.
134. 4.5 PRINCIPLE OF CONTRIBUTION…
RVU Finfinnee Campus
An example:
Given that, Businessman insures his factory under three fire policies for a total of
Birr 10,000,000 Company (A) provides 5,000,000 birr under one policy, company
(B) provides 2,000,000 birr under the second policy and company (C) provides
3,000,000 birr under the third policy. Each of the three companies will share the
payment of losses in proportion to the amount of the total coverage, depending on
the amount secured for each. If the factory had exposed to fire and the loss is 500,000
L.E, How much businessman will collect and how much every company should pay?
135. 4.5 PRINCIPLE OF CONTRIBUTION…
RVU Finfinnee Campus
The principle of contribution is enforceable only under the
following conditions:
The policies must cover the same period.
The policies must have been enforcing at the time of loss
They must protect the same peril.
The subject matter of insurance must be the same, and
The insured must be the same person.
136. 4.6. PRINCIPLE OF PROXIMATE
CAUSE
RVU Finfinnee Campus
The principle of the proximate cause means the insurance
company is liable to indemnity the insured, if the insured
risk is the proximate cause of the loss.
Proximate cause literally means the ‘nearest cause’ or
‘direct cause’.
This principle is applicable when the loss is the result of
two or more causes
The principle does not apply in case of life insurance
137. ESSENTIAL REQUIREMNTS OF AN
INSURANCE CONTRACT
The agreement must be for a legal purpose
The parties must have legal capacity to contract
There must be evidence of agreement of the parties to the promises (offer and
acceptance)
The promises must be supported by some consideration
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138. EVENTS
COVERD
UNDER
INSURANCE
CONTRACTS
Named Peril Versus All Risk
Excluded Losses
Excluded Property
Defining the Insured/Named
insured/policyholder
Third party Coverage
Excluded Location
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139. DISTINCT (SPECIAL ) LEGAL CHARACTERISTICS
OF INSURANCE CONTRACTS
Personal Contract
Unilateral Contract
Conditional Contract
Aleatory Contract
Contract of Adhesion
Contracts of Uberrima fides
Contract of Indemnity
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142. Chapter
Objectives
RVU Finfinnee Campus
After reading this unit, you
should be able to:
Understand the different classes
of insurance
Discuss the different kinds of
life insurance contracts or
policies
Apply the actuarial formulas to
determine life insurance
premiums.
144. Life /Personal Insurance
Insurance sells to the individual persons.
Human lives are insured under this insurance.
It also includes supplementary policies that sells to protect
households against a loss of earning from disability (disability
insurance); injury or
incurring a disease (health insurance and living a
certain period (endowments, annuities, and pensions).
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145. Non-Life Insurance/General Insurance
insurance to protect property
from the risks of theft, fire,
accident, or natural disaster
It includes:
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property losses
Liability losses
Workers' compensation and
health insurance payments.
146. DIFFERENCE BETWEEN LIFE INSURANCE AND GENERAL
INSURANCE
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BASIS LIFE INSURANCE GENERAL INSURANCE
RISK The occurrence of risk (death) is certain occurrence of the risk insured is uncertain
PROCEDURE Requires medical certificate survey is made before a property is
insured.
PREMIUM AND AMOUNT The premium amount is depending on
the personal requirements of the
insured the age and health condition
the premium can be taken up to the value
of the property and the risk involved
INSURABLE INTEREST AND
TRANSFER oF THE POLICY
insurable interest must exist at the time
of purchase of a life policy
can be transferred either by assignment
or by nomination
must exist at theii time of taking the
policy and at the time of loss
the financial right can be transferred only
by assignment with prior permission of
the insurer
CONTRACT life insurance is not a contact of
indemnity and subrogation
General insurance contracts are contracts
of indemnity
ELEMENTS and PURPOSES oF
INSURANCE:
contains both elements of protection
and savings (investment)
Its purpose is simply the protection of the
property.
147. 2. Social
vs. Private
Insurance
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Premium under such insurance schemes is paid
by the government or the employers or by both
In some cases, the employees or beneficiaries
also contribute their share of the premium
is involuntary, i.e., it is required by law
like pension plans, disability benefits,
unemployment benefits, sickness insurance,
industrial insurance etc
Social Insurance
Enhancing social security right for everyone
insurance to protect and uplift the weaker
sections of the society
148. 2. Social vs. Private Insurance
Private Insurance
Private Financing/out of pocket payment
Emphasizes individual actuarial equity,
i.e., premiums reflect the expected value of
losses.
Most private insurances are voluntary
although the purchase of some insurance
is required by law
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149. 5.3 Life Insurance
Commercial Code of Ethiopia defines life
insurance as:
"a contract by which the insurer, for a certain sum of
money or premium proportioned to the age, health,
profession, and other circumstances of the person
whose life is insured engages that, if such person shall
die within the period limited in the policy, the insurer
will pay according to the terms specified thereof, to the
person in whose favor such policies are granted."
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150. Purpose of Life
Insurance
The main purpose of life insurance is
financial protection of the dependents of
the insured and
savings for an old age, to cover personal
loan and tuition fees for education
expense.
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151. 5.4 Types of Life Insurance Contracts
(policies)
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1. Term Insurance
Issued to provide death benefit to the beneficiary if the insured dies
within the specified time period stated in the policy
Ranging from few months to a specified number of years such as 10
years, 15 years, 20 years
The policy provides only temporary protection and has no saving
element
The cost/premium payment is relatively low.
152. Types of Term life Insurance
RVU Finfinnee Campus
I. Level Term Policy
This policy provides a constant sum assured (amount of money
payable in the event of death) throughout the term of the policy
The amount paid out is the same whether you’re near the start or end
of your policy.
It is the cheapest form of life insurance since the cover is only
temporary and
There is normally no surrender value available on early termination
153. What can
The pay-out from level term life insurance
can be used in the way your beneficiaries
want. For example, it can help:
Cover a mortgage
Pay for school or university fees
Pay for everyday living expenses
Give your loved ones a nest egg
level term life
insurance
cover?
Pay for your funeral
Pay off personal loans and debts
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154. Types of Term life Insurance
RVU Finfinnee Campus
II. Decreasing (or Diminishing) Term Policy
The amount of claims to be paid to the insured decreases periodically
(possibly each year, month, quarter or half year) by a stated amount,
Decreasing to nil at the end of the term
These policies are usually issued to borrowers of money
Also known as "mortgage – redemption policy."
Premiums for such type of policies are paid at the beginning of the policy.
It gives financial protection to the creditor and the dependents of the debtor
in the event of accidental death of the debtor
155. Types of
Decreasing Term
Policy
A. Mortgage Protection
Insurance (MPI)
B. Credit Life
Insurance
C. Family income
coverage
D. Credit Cooperative
Insurance
አበዳሪ ወይ ተበዳሪ ይሞታል ድሮ ቀረ
RVU Finfinnee Campus
156. Types of Term life Insurance…
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III) Increasing Term Contract
Designed to combat the effects of inflation
the initial amount of insurance increases every year at a rate
determined in advance (often 10%) Whenever the sum assured
is increased, the premium is correspondingly raised
the amount of death benefit depends on when the insured dies;
the later this occurs, the higher the death benefit
157. Characteristics of Term Life Insurance
RVU Finfinnee Campus
Temporary
protection only
provides cover
against death within
a specified period
Convertible/renewab
le term insurance
policy without going
in for new medical
examination
no investment
element
payment of death
benefit is possible
but not certain
Cheapest form of life
insurance in terms
of premium
158. Term Insurance Policies Can Also Be Classified On The Basis
Of Mode Of Premium Payment
1
Level Premium
Policy or Regular
premium policy
2
Limited Premium
Policy
3
Single Premium
Policy
RVU Finfinnee Campus
159. 5.4 Types of Life Insurance contracts
(policies)
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2. Whole-life Policies/Contracts
Whole life policy provides permanent financial protection to the
insured's dependents in the event of death and
It allows for the accumulation of savings over the life of the insured
The policy will mature for payment only on the death of the assured
the insured can pay premium as long as he/she lives or for a
specified number of years such as up to retirement date
160. Types of Whole-life
policies/contracts
RVU Finfinnee Campus
Depending On The Manner Of Premium Payment, Can Be
Classified As :-
Ordinary/ fixed whole life policy
Limited-payment whole life insurance
Single-payment whole life policy
161. A) Ordinary whole life policy
also known as straight life insurance
Your premiums are fixed and will never go up, regardless
of market conditions.
This policy provides lifetime or permanent protection at
a lower cost/premium
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162. B) Limited-payment whole life insurance
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The premiums are paid for a limited or selected period of time,
which is determined in advance
But the policy will mature for payment only on the death of the
assured
After the expiration of the specified period, the policy is said to be
"paid up" and no more premium payment is required to keep the
policy in force until the death of the insured.
Higher premium than ordinary life plan
163. C) Single-payment whole life policy
premium is paid in a single installment at
the purchase of the whole life insurance
RVU Finfinnee Campus
164. 5.4 Types of Life Insurance contracts
(policies)
3. Endowment Insurance Policy
Any life insurance plan with a saving component and
lump sum maturity benefit can be termed as an
endowment plan.
Modified form of whole life insurance policy
The policy has dual purpose: financial protection and
accumulation of funds for possible contingencies in the
future.
Two Products for the Price of One
Endowment policy helps insured to save and to provides
the assured with loan facility
Because life can be surprising, and so can death
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165. Types Of Endowment Policies
Ordinary Endowment Policy
o This policy will mature for payment on the
survival of the assured on the date of maturity
or on the date of his death within the
endowment period
o payment to the insured or his dependents is is
certain whether or not he dies before the policy
matures or survives the endowment period
RVU Finfinnee Campus
166. Types Of Endowment
Policies…
Pure Endowment Policy
The pure endowment policy will
mature only if the insured person
survives the endowment period
payment to the insured is
uncertain
The objective of this policy is to
benefit the insured himself rather
than his dependents
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167. 4. Supplementary Insurance Policies
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• issued only in conjunction with the main life insurance policies for additional
premium for each contract.
• also known as RIDERS
• The supplementary contracts include:
o Health Insurance
o Supplementary Accident Insurance
o Comprehensive Accidental Indemnities (CAI):
170. 5. Life Insurance Premium Determination
INSURANCE
PREMIUM
The amount of money an individual or business must pay for an
insurance policy.
Paid periodically for policies that cover healthcare, auto, home,
and life insurance,
Gross Annual Premium (GAP) = Net Annual Premium (NAP) + Loading
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171. NET PREMIUM
Net premium is the amount received orwritten
on insurance policies when premiums are
incurred or paid
Net premium can be referred to as the present
value of policy benefits less the present value
of premiums payable in the future.
Hence, net premium does not consider any
expenses expected in the future for policy
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172. NET PREMIUM
The net premium calculation does not consider
expenses,
include commissions paid to agents who sell the
policies, legal expenses associated with
settlements, salaries, taxes, clerical costs, and
other general expenses
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173. FACTORS THAT AFFECT YOUR LIFE
A th
INSURANCE
ge Gender Smoking Heal
Family
Lifestyle Medical Driving
History Record
Why do women live
longer than men?
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174. Life insurance Premium Determination
RVU Finfinnee Campus
There are three primary elements (major determinants) in life
insurance rate making:
o Mortality Charge
o Interest Charge
o Loading Charge
175. Mortality Charge
Mortality Charge is the amount charged every
year by the insurer to provide the life cover to
the policyholder on the life of the Life Insured
It can otherwise be called the Cost of
Insurance.
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176. Mortality Rate
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• is a measure of the number of deaths (in general, or due to a specific
cause) in some population, scaled to the size of that population, per
unit time.
Death rate= the number of deaths recorded X 1000
the number of people in the population
177. Mortality Table
is a table based on past data on life
expectancy of human beings.
It is based on the age factor
This table Shows the death rate for a defined
population within a specific rate of time
is used for premium calculation.
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178. Mortality as a factor
affecting Life Insurance
Premium Rates
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Age (X) Number Living at
Beginning of year
Number Dying
During year
Mortality
Rate
30 100,000 213 0.002130
31 99,787 219 0.002200
Mortality Rate Calculation
Mortality Rate = N D / NL
=248/98,876
=0.002510
=25.10‰
32 99,568 224 0.002250
33 99,344 230 0.002320
34 99,114 238 0.002400
35 98,876 248 0.002510
. . . .
. . . .
. . . .
98 1,933 1,202 0.621830
99 641 641 1.000000
100 - -
179. Methods of Premium
Determination
1. The Natural Premium System
(NPS)
2. The level premium system
(LPS)
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180. Methods of Premium Determination
1. The Natural Premium System
Assume sum assure is 1,000
FORMULA:
Share of each =Sum Assured x Mortality Rate
Calculate The premium share of each person
for year 1,2,3,4, and 5 ?
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181. Calculate The premium share of each person
for year 1,2,3,4, and 5 ?
First year premium=2.13
Second year premium=2.20
Third year premium=2.25;
Fourth year premium=2.32; and
Fifth year premium=2.40
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182. Methods of Premium Determination
2. The level premium system
5-year level term insurance for ETB 1,000
issued at age 30,
Calculate the net annual premium ?
FORMULA:
net annual premium =
Total Death Claim/Total No. of Living
A
g
e No.
Living
No.Dying Death
Claim
3
0 1
0
0
,
0
0
0 2
1
3 2
1
3
,
0
0
0
3
1 9
9
,
7
8
7 2
1
9 2
1
0
,
0
0
0
3
2 9
9
,
5
6
8 2
2
4 2
2
5
,
0
0
0
3
3 9
9
,
3
4
4 2
3
0 2
3
2
,
0
0
0
3
4 9
9
,
1
1
4 2
3
8 2
4
0
,
0
0
0
T
o
t
a
l 4
9
7
,
8
1
3 1
1
2
4 1
,
1
2
4
,
0
0
0
RVU Finfinnee Campus
183. Methods of Premium
Determination
2. The level premium system
If the total claim is ETB 1,124 and the
number of annual premiums is 497,813
then each premium is equal to
Each net annual premium =
1,124,000÷497,813
= 2.2578759
= 2.26
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Age No. Living No. Dying Death Claim
30 100,000 213 213,000
31 99,787 219 210,000
32 99,568 224 225,000
33 99,344 230 232,000
34 99,114 238 240,000
Total 497,813 1124 1,124,000
184. Premium Determination For Term
Insurance Policy
RVU Finfinnee Campus
Net Single Premium (NSP)
MEHOD 1
FORMULA
NSP= Total PV (EFDC)
Total number of Policy Buyers
where as:-
EFDC: the expected future death claim = policy amount x number of people dying
PV: Present value = EFDC
(1+r) n
185. Premium Determination For Term
Insurance Policy
RVU Finfinnee Campus
Method-I
Step one: Compute the expected future death claim
(EFDC)
Step two: Find the present value of the expected future
death claim.
Step three: Find the NSP per insured person
186. Premium Determination For Term
Insurance Policy
RVU Finfinnee Campus
Example 1:
Consider term insurance policy buyers at age 30 male
population of (policy holder)958,000.,The expected number of
death is 1657,the policy amount(death benefit) is birr 5000 , the
going interest rate is 10%.Assuming a one year term insurance
policy purchased by the insured group, compute the NSP?
187. Method-I
RVU Finfinnee Campus
Step one: Compute the expected future death claim (EFDC)
(EFDC) = policy amount x number of people dying
= 5000x1657=8,285, 000
188. Method-I
Step two: Find the present value of the expected future death
claim.
PV (EFDC) = EFDC = 8,285,000 = 7, 531, 818.18
(1+i) n (1+0.1)1
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189. Method-I
RVU Finfinnee Campus
Step Three: Find the NSP per insured person.
NSP= PV (EFDC)
Total number of Policy Buyers
=7,531,818-18
958,000
= birr 7.86
190. Premium Determination For Term
Insurance Policy
RVU Finfinnee Campus
Net Single Premium NSP
MEHOD 2
FORMULA:
NSP= ∑n x Policy amount x No. of Death/ Total no.of Policy Buyers
(1+i) n
191. MEHOD 2
RVU Finfinnee Campus
NSP= ∑n x Policy amount x death rate/Total no.of Policy Buyers
(1+i) n
5000x1657/958.000 = birr 7.86
(1+0.1)1
192. Premium Determination
For Term Insurance Policy
RVU Finfinnee Campus
EFDC
8,285,000
8,510,000
8,735,000
QUIZ:
Considering the question in Yr Age
Number
Living
Number
Dying
policy
amt
example one above and if the
policy is a 3-year term insurance 1 30 958,000 1657 5000
compute the NSP? Using
method, I and II 2 31 956,343 1702 5000
2. List down the objectives of risk 3 32 954,640 1747 5000
management.
3. Explain ‘risk transfer’.
4. What do you mean by ‘utmost goodfaith’?