Page 21 - RISK Management IC86 Ebook

The Insurance Times

l Lower Risk Management costs and thus higher profits
l Fairly stable earnings
l Little or no interruption of operations
l Continued growth
l Satisfaction of the firm's sense of social responsibility or

desire for a good corporate image,
l Satisfaction of externally imposed obligations (e.g. legislative

requirements).

l The first essential step towards achieving the above objectives
will be to establish an effective risk management programme,
which also needs to remain flexible to adopt changing
conditions in the business environment.

l The following elements of a risk management programme,
therefore, gain importance towards building-up an effective
risk management programme.
a) Setting programme objectives,
b) Defining the role, responsibilities, functions and reporting
relationship of the Risk Manager,
c) Organising & putting the programme in place,
d) Controlling the programme,
e) Formulating a risk management policy.

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