What is the role of Risk Management in Insurance?

---

Hi, The role of risk management is basically what it says:::the risks have to be managed. The probability of the event actually happening is worked out, which then provides a basis for the premium calculation. There are alot of things to consider when judging potential risks, also the balance of the portefeuille. Reinsurance and Insurance have their specialists.

---

Hi Nimal, Insurance is the one of instruments in Risk Management. Insurance provide protection against risks like sudden death (life cover), personal accident, fire accidents, Electrical accidents, Theft and Burglary etc. Now a days you can insure any thing which is under sun. By paying premium as consideration you can protect your assets and life from unexpected events.

---

Answers:

---

To identify the risks, decide which ones are transferrable to insurance, and manage the ones that aren't.

---