Page 143 - RISK Management IC86 Ebook

The Insurance Times

into a captive insurance company or used for internal
fund.

Q7. Examine the role of the following in Corporate
Risk Management :

(a) Organisation charts - They are useful starting point as
they reveal various facts like:
(i) Nature and extent of the organisation's activities. E.g,
large conglomerates may be split into subsidiary
companies.
(ii) Interrelationships and interdependencies between
various parts of the organization.
(iii) the breakdown of the organisation into individual profit
and cost centres.
(iv) the people with the authority to participate in making
and implementing risk handling decisions or those
who may be able to help in providing technical or
other information to the risk manager.
(v) any organisational weaknesses which may enhance
the risk situations.

(b) Accounting and other records - An annual record is to
be maintained of the cost of the organisation of previous
types of risks including losses, recoveries from the

Website: www.bimabazaar.com Call: 033-22184184 / 40078428 144

Copyright@ The Insurance Times. 09883398055 / 09883380339