Having professional liability coverage is vital to modern medicine, for a physician very often cannot secure hospital privileges without it, even if such insurance is not statutorily encouraged or required. Physicians obtain an appreciable part of their earnings from inpatient services. Also, physicians unable to admit sick patients to any hospital might experience difficulties attracting patients to their office practices. (more…)

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Most insurance risks involve natural phenomena, as mediated by human behavior. Thus, life and health insurers cover losses from death and sickness, thought to be in most ways objective occurrences beyond the control of insureds and hence insurable. Similarly, much property-casualty insurance covers damages from accident, fire, or natural disasters. However, all malpractice insurance (and much other insurance) covers only the naturally occurring damage deemed legally the responsibility of the insured policyholder. The extent of damages, too, is ultimately determined by legal rules, not by policy provisions. The law of “tort” (civil cases for damages wrongfully caused) varies by state and can change markedly over time. (more…)

Appropriate training for individuals on risk and insurance issues is tools to enhancing social justice and economic development and social environment. The power to ensure adequate protection for the long-term assets and individual wealth is a key element in promoting social and economic integration. (more…)

Increase in Perceived and Real Risks

Rising hazards and disasters is probably the most tangible level of increased risk. For several years, some OECD countries are facing a resurgence of risk, whose extent and frequency would be difficult to imagine. This is in advance how modern terrorism, especially after the September 11, 2001, and repeated large-scale natural disasters and catastrophic consequences. Terms such as risk-society or fear-society is used increasingly in human acute perceptual experience (more…)

Financial risk management usually covers the following subcategories:

• Market Risk. This refers to the risk that changes in the price of stocks or rates of interest led to a reduction in the value of an investment portfolio or security. There are four types of market risk:

Foreign exchange risk. The main sources of foreign exchange risk are came from currency movements and fluctuations in international interest rates. (more…)

As we dig further into the area of insurance, let me make a statement that will help guide you through the fundamentals. You should have assets insurance, not liabilities. This can sometimes be a difficult and emotional pill to swallow. I know a lot of parents who have fallen prey to the misguided statement that you need to insure your children. Let me be clear on this: You do not need (more…)

Strategic risk is involved altogether aspects of business activities and often summarizes the things that are harder to manage. It also manages things which don’t fall into other categories of risks identified. Generally, strategic risk relates to the impacts of things such:

• Poor marketing strategy
• Poor product launchings.
• Changes in consumer behavior
• Policies and regulatory changes
• Bad acquisitions scheme (more…)

Risk management as a field of study of business has evolved from the need to model the financial risks of the new industry. It rapidly spread in the new markets of the 17th century and recently in the business environment more broadly. As anticipated, the financial risk is among the most complex risk management, as constantly the nature of financial markets has changed. Modeling and financial risk management using the application of sophisticated tools based on complex mathematical models. Nearly all organizations tend to be reasonably fit to their direction towards financial risks. (more…)

The standard risk management process can be seen as a four-stage process centered on identification, quantification, management, and reporting. Each element is a vital link in the chain and must be implemented correctly in order to be effective.

1. Risk Identification

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