Page 26 - Insurance Times August New 2023

Proactively Addressing Problems Can Boost Customer
Satisfaction.

Strategies of ERM:
Risk data and infrastructure are mechanisms for making sure
we have good information to manage risks. Common
strategies that are used in ERM include safety policies,
ethical regulations, quality assurance, data-driven decision-
making, contingency planning, risk education, and stress
testing.

The basic methods for risk management-avoidance,
retention, sharing, transferring, and loss prevention and
reduction-can apply to all facets of an individual's life and
can pay off in the long run. The ERM process includes five
insurance policy, where the insurance carrier assumes the
specific elements - strategy/objective setting, risk
defined risks for the policyholder in exchange for a fee, or
identification, risk assessment, risk response, and
insurance premium, and will cover the costs for worker
communication/monitoring.
injuries and property damage.
Conclusions on ERM:
Benefits of ERM for the organisation:
ERM is a practical model that helps prioritize all risks and
The effective ERM can be a boon to the business enterprises
brings focus to decisions and activities. Over time,
and the same can accrue the following benefits.
implementing ERM will build resilience and preparedness for
Consistent and Efficient Operations.
all stakeholders.The long-term survival of an organization
Security Confidence. depends on the ability to manage risks. The intensifying
Increased Employee and Customer Satisfaction. competition in the global markets has forced managers to
focus on maintaining a strong risks management program
Healthier Financials.
by establishing values.
Increased Risk Transparency.
More Focused Risk Analysis and Reporting. Those using risk analysis results provided by others should
Increased Resource Usage Efficiency. pay particular attention to the understanding of dependence
displayed by their analysts and totally reject any probabilistic
Healthier Perspective of Risk
analysis that suggests a failure to deal with dependence in
Managing Risk Leads to More Efficient, Consistent
an appropriate manner.Risk management is the process of
Operations.
identifying, assessing and controlling threats to an
Risk Management Helps Businesses Identify and Avoid
organization's capital and earnings. These risks stem from
Unapparent Risks.
a variety of sources, including financial uncertainties, legal
A Good Risk Management Strategy Can Help Protect liabilities, technology issues, strategic management errors,
the Brand. accidents and natural disasters.

Insurers may soon come under GST Audit
Insurance companies may soon face goods and services tax (GST) audits as tax authorities plan a "deep dive" into
their business practices to check for the possibility of a raft of tax-linked irregularities. Several insurance companies
are being probed for wrongly availing of the input tax credit without the underlying supply of goods and services
based on fake invoices generated by their channel partners and intermediaries. "We want to deep dive into the
overall business and see if there are further taxation issues besides commissions, which are already being investi-
gated," a senior official of the Central Board of Indirect Taxes and Customs (CBIC) told. GST audits are typically con-
ducted to verify declared sales, taxes paid, refunds claimed, and input tax credits availed of by looking at tax returns
and other records maintained by businesses. Any mismatch in information across documents could raise a red flag.

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