Danger, Risk and Insurance (part 2)

Every human action can pose a risk. This risk depends on the various activities performed by the individual. From the point of view of insurance, risk is the potential loss a person can experience and the danger of something happening but he does not know when and what will happen. To address these risks, preparation and adequate protection are required. Therefore, the significance of the insurance would be more visible if the catastrophe struck, even if the disaster does not want all people.

They do not expect the loss of society in the disaster as a result of the disaster. So be grateful if you take it out, you do not have to be confused by finding money to repair damaged houses or cars that have been blocked by floods. Simply add a claim to the insurer, you will be compensated.

Risk Forms

1. Clean – This will occur when it causes loss or does not cause a loss. Example: Fire Hazard, Accident Risk.

2nd Speculative – This can cause loss, no loss or profit (profit). Example: Production, Monetary (FX).

3rd Basic – The risks of collision can be very high or may be disastrous. Example: War, Earthquake, Air Pollution

4. Special (in particular): Riskful, if yes, the effects of losses are local, non-comprehensive or non-catastrophic. Example: Fire, Accident, Theft

Risk Management

1. Risk Identification

This section identifies personal injury to a human being, or the risks inherent in a person's or business process. Risk Assessment

1. Frequency is rare, low loss / low impact

These risks do not need to be provided because they are seldom present and if the effect is low / low. Frequency is rare, high losses / major impact.

This risk must be ensured and insurance companies are still willing to close / cover this risk

3. Frequency is used, low loss / low impact.

This risk rating is the same as 1, which should be taken to prevent it from happening frequently. The frequency is used for high loss / high effects.

In this risk, the client and the insurance companies have an opposite mindset. Customers want this risk to be secured, but insurance companies do not get it, because frequency is often high and the effect of losses is high. Financial Control

Receipt of insurance coverage with insurance premium (Customer Service is the risk of the insurance company). You will bear your own costs, risks and the effect of weakness if the loss is high enough to jeopardize your business

. Physical control

Remove the risk. But this is not possible because the risk always exists and may need to be minimized to minimize the risk by providing incident prevention equipment and complete response equipment to address the risk

Source by sbobet

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