Page 20 - RISK Management IC86 Ebook
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Risk Management
n Enhancing the ability to prepare for various circumstances.
n Reducing liabilities.
n Assisting in clearly defining insurance needs.
Strategic Management Vs. Risk Management
l Strategic management, in its broader sense would differ from
risk management of exposures to accidental losses in the
following ways -
Strategic management aims for
l Equal importance to pure and speculative risks
l Growth of an organization to fulfill its full productive potential
l Focuses on an organization as a whole and not only on loss
exposures
l Thus risk management of exposures to accidental losses can
be viewed as part of strategic management and therefore,
becomes an independent discipline and part of the more
generic strategic management.
Objectives of Risk Management
The major objectives for an enterprise can be -
l Mere survival
l Peace of mind
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