Risk Management and Cost

Over the past year, there have been many misfortunes around the globe. Between tornadoes, floods and earthquakes, which have ravaged many regions and countries, it is not surprising that the standard was usually used to calculate company costs for risk management and risk insurance – the total cost of risk (TCOR) – a general spike during this period. However, I was surprised that this growth was relatively low, especially with regard to the severity of the opponents in question. A risk management study, published last month through more than 1,000 organizations, showed that this growth was marginally 1.7% compared to the total cost of risks, which corresponds to an increase of 12 cents against the dollar. This survey also showed that, despite the estimated $ 116 billion in insurance losses, the continued high pressure on the exchange rate continued due to the continued over-capitalization of the real estate industry.

However, while last year's insurance disaster losses were close enough to become record-breaking, even if the coverage ratio of property increased, it does not seem to have been a significant increase in coverage from post-disaster regions. In fact, where risk costs are concerned, the property insurance ratio has risen by about 9% to $ 1,000 per nineteen cent. Although this does not necessarily mean dramatic growth, companies that want to keep the most liquidity on top of many companies, but this increase may cause some minor complications. Moreover, it seems that many insurance companies are less than the ideal prerequisites and requirements, primarily because of the form of certain collateral against the possible non-payment of insurance premiums. such as cash, deposits, market securities, etc.

Risk Management is basically about trying to identify, deceive, mitigate, and provide for any possible risk factors that could endanger an organization. Natural disasters, however, are among the factors that are most catastrophic to the company's resources and functionalities, but these are the most unpredictable and unpredictable threats. In order to combat such potential threats, all companies can really be assured that they have been thoroughly provided, and in particular for those who are within disaster relief areas, ensuring that the information and resources of the company are not all where they can all be destroyed by a weird occurrence , and could effectively paralyze the organization. Lastly, while the overall cost of the risks may only change slowly, and although there may be a number of complications to provide assurance to many companies against these natural disasters, it is of utmost importance not to jeopardize their equipment and infrastructure, not to mention their corporate governance programs. there is an answer.

Source by sbobet

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