Risk Management Techniques | Insurance Glossary Definition

... for handling event risks include risk retention, contractual or noninsurance risk transfer, risk control, risk avoidance, and insurance transfer. 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RelatedTerms ContractualRiskTransfer Theuseofcontractualobligationssuchasindemnityandexculpatoryagreements,waiversofrecoveryrights,andinsurancerequirementstopassalongtootherswhatwouldotherwisebeone'sownrisksofloss. RiskControl Asynonymforlosscontrol.Thetechniqueofminimizingthefrequencyorseverityoflosseswithtraining,safety,andsecuritymeasures. RiskFinancing Achievementoftheleast-costcoverageofanorganization'slossexposures, whileensuringpost-lossfinancialresourceavailability.Theriskfinancing processconsistsoffivesteps:identifyingandanalyzingexposures,analyzing alternativeriskfinancingtechniques,selectingthebestriskfinancing technique(s),implementingtheselectedtechnique(s),andmonitoringthe selectedtechnique(s).Riskfinancingprogramscaninvolveinsurancerating plans,suchasretrospectiverating,self-insuranceprograms,orcaptive insurers. RiskManagement Thepracticeofidentifyingandanalyzinglossexposuresandtakingstepstominimizethefinancialimpactoftheriskstheyimpose.Traditionalriskmanagement,sometimescalled"insuranceriskmanagement,"hasfocusedon"purerisks"(i.e.,possiblelossbyfortuitousoraccidentalmeans)butnotbusinessrisks(i.e.,thosethatmaypresentthepossibilityoflossorgain).Financialinstitutionsalsoemployadifferenttypeofriskmanagement,whichfocusesontheeffectsoffinancialrisksontheorganization.Forexample,interestrateriskisabank'smostimportantfinancialrisk,andvarioushedgingtoolsandtechniquessuchasderivativesareusedtomanagebanks'exposuretointerestratevolatility. RiskManagementProcess Theprocessofmakingandimplementingdecisionsthatwillminimizetheadverseeffectsofaccidentalbusinesslossesonanorganization.Makingthesedecisionsinvolvesasequenceoffivesteps:identifyingandanalyzingexposurestoloss,examiningfeasiblealternativeriskmanagementtechniquestohandleexposures,selectingthemostappropriateriskmanagementtechniquestohandleexposures,implementingthechosentechniques,andmonitoringtheresults.Implementingthesedecisionsrequiresperformingthefourfunctionsofthemanagementprocess:planning,organizing,leading,andcontrollingresources. RiskRetention Plannedacceptanceoflossesbydeductibles,deliberatenoninsurance,and loss-sensitiveplanswheresome,butnotall,riskisconsciouslyretained ratherthantransferred. RelatedProducts ContractualRiskTransfer AnycontractingpartyneedsthisIRMIbest-sellerwithinarm'sreach.Itexplainstheinsandoutsofindemnityandholdharmlessagreements,waiversofsubrogation,andidealinsurancespecifications,SeetheTableofContentsandthetopsevenreasonsyou'llwantitbyyourside.LearnMore PracticalRiskManagement Theriskprofessional'sindispensablesourceofpractical,concise,action-orientedbackgroundandadviceonallofthemostimportantactivities,techniques,andtoolsofriskmanagement.Helpsyoumakeappropriatedecisionsandimplementbestpractices.LearnMore TheRiskReport Analysisandinterpretationofthelatestinnovationsininsurancecoverageanddiscussionsofriskmanagementbestpractices.Onlinesubscribersgetaccesstoafullysearchablearchiveofmorethan200issues!LearnMore ExposureSurveyQuestionnaire TheExposureSurveyQuestionnairecontainsmorethan750keyquestionsand25schedulesinastep-by-stepformattohelpyouthoroughlyidentifymajorrisksforanyorganizationthroughinterviewswithmanagementandoperatingpersonnel.LearnMore GuidelinesforInsuranceSpecifications Thishandyguidehelpsyouprepareclearandconciseinstructionsforunderwriters.Itcontainsmodelspecificationsfor24commonlypurchasedtypesofcommerciallinesinsurance,allowingyoutoquicklypreparedetailedandaccuratespecificationstailoredtoanyorganization'sneeds.LearnMore IRMIInsuranceChecklists IRMIInsuranceChecklistshasbeenassembledbyIRMItoassistinsurancebuyers,riskmanagers,agents,consultants,andbrokersindevelopinginsuranceprogramstorespondtotheuniquelossexposuresofanybusinessorclient.LearnMore IRMIInsuranceCancellationGuide Guidetostatelawspertainingtoaninsurer’sintenttocancel,non-renew,orevenincreasepremiumsorrestrictcoverageonrenewalofaninsurancepolicy.LearnMore 101WaysToCutBusinessInsuranceCosts This"howto"guideprovidescost-cuttingstrategiesforeverymajorlineofcoverage.Itisdesignedtohelpinsurancebuyers,andtheiragentsandbrokersdoabetterandquickerjobofauditingtheirinsuranceprogramstoreduceinsurancecostswithoutgivingupnecessaryprotection—agoldmineof101tried-and-truestrategies!LearnMore Risk&InsurancePackage ThisisTHEreferencepackageforanyriskorinsuranceprofessionalwhoworksinspecialtylines.LearnMore RiskManagement WhyIRMI? 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