Risk Management Strategies

Volumes of risk management have been written, but all of this is based on four simple options and a set of ideas. If you face a risk, then it, MITIGATE it, RETAIN it or SHIPPING it.

Avoiding involves choosing not to accept the risk. For example, if you no longer enjoy the added risk of buying a trampoline, avoid this risk by letting go of your sister-in-law.

Mitigation includes steps to reduce the likelihood or severity of loss. Adding the example above, he decided to keep the trampoline. However, he has decided to take some action in order to reduce the opportunities that someone will use without his permission and do some things to make it safer. First, a lock is placed at the rear gate, which limits the access to the trampoline (reducing the likelihood of loss). After that, a few thousand dollars are spent on buying padded carpets and spread around the trampoline (reducing the severity of the loss).

Conserving Risk accepts the chance of loss. If you do not secure your car, you have decided to keep the risk and accept all the consequences of the loss. More prudence for preservation can be deducted in most property policies.

The transfer of risk is made using contracts. Keeping a harmless treaty is a treaty that one party will not sue. However, the most common form of risk transfer is the insurance policy. Insurance policies are contracts in which one party (the insurer) assumes another (the insured) risk is pay.

A cautious warning for the transfer of insurance policies. Virtually all insurance policies cover coverage limits (insurance company Retention and Redemption ), so make sure you buy the appropriate limits for your situation. An insurance agent who represents more than one insurance company or a professional risk manager is best placed to advise on the constraints of your situation.

With the use of a small common sense and with the idea of ​​which risks and risks you are willing to accept, you can better protect yourself, your family, or your business against the many dangers that life has thrown at you. Appropriately, these techniques can save you money on insurance premiums.

Source by sbobet

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