Reinsurance is the condition when one primary insurance company assign or transfer risk to another insurance company (or groups companies). In cases of life insurers, the object that is transferred can be risk of mortality, investment risk, surrender or the combination of those.

The process for reinsurance may occur in several circumstances where the company and/or insurers are facing some limitation. Let say an insurance applicant who has unusual risk condition, or need life insurance policy with higher nominal value (bigger than a retention limit of the insurance company). (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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