State the meaning and explain objectives of risk management

      

State the meaning and explain objectives of risk management.

  

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Simon
Risk management is the process of identifying loss exposures faced by an organization and selects the most appropriate methods for treating such exposures.
State six objectives of risk management.
• To minimize the effect the loss would have on other people and the society.
• To ensure continued growth of the organization.
• To ensure stability of earnings by making sure the organization continues to run without risks.
• To ensure survival of the firm. An organization should be able to resume to its normal operations within some reasonable time frame after the loss.
• To prepare for potential losses in the most economical way. Those involves analyzing the cost of safety programs, insurance premiums aid and the cost associate with the different techniques for handling losses.
• To meet any legal obligations. The risk manager should ensure that all legal obligations from the government are met.
• Certain losses exposures can cause great worry and fear for the risk manager and key executives but when there is a proper risk management, it reduces all these anxieties.

skilled writter answered the question on May 1, 2018 at 16:17


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