Risk Management Process - Allocate an Appropriate Method by Means of Using a Risk Management Matrix
Insurance protection that is provided by insurance companies involves possibly best servicing of risks underwritten. At present, risk management in any company has become a challenge. New structures are established or tasks of the already existing ones are modified just to make sure that implemented mechanisms work properly in situations of extreme threats. In the literature of ihe subject it is emphasised that after the terrorist attack of the 111th of September 2001 a role of a manager that is in charge of risk management in a company has undergone some remodelling. The very manager as a member of a team that is responsible for assessing all aspects of risk (making up the company holistic structure of risk including risks of terrorism and catastrophes) has adopted a name of a chief risk officer (CRO). Processes of risk management in a company including an insurance company as well involve various mechanisms. Those most effective, transparent and relatively easy to employ include a holistic risk map that is built with reference to an individual profile of activities undertaken by a particular company. One of risk map advantages is that individual risks are identified and grouped in such a way that it is possible to make assessments of relations observed between particular risks. The very nature of the risk mapping process lies in application of the most appropriate methods of risk management matrixes (insurance, retention, loss control and avoidance) and their implementation in particular risks. Risk management by a risk map is particularly justified in the context of catastrophic risk and risk of terrorism. (fragment of text)
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