Page 12 - Risk Management in current scenario

Risk Management from Game of

Chance to Insurance Business

T his talk was presented at the Risk Management Conference on

25th November 2017 popularly known as "Risk Roulette"
organized by the Finance Club members of "International Business
School and Media" at Pune. This talk is on the journey of showing how
does the game of chance moves to the insurance business and how risk
management work in that condition.

Roulette is a casino game named after the French word meaning little
wheel. The game has been played in its present form since as early as
1796 in Paris. To determine the winning number and color, a croupier
spins a wheel in one direction and then spins a ball in the opposite
direction around a tilted circular track running around the circumference
of the wheel. The ball eventually loses momentum, passes through an
area of deflectors, and falls onto the wheel and into one of 37.

Game of Chance-Risk Theory
The game of roulette represents the game where the outcome of success
is heavily dependent on future. For example, if I toss a coin and call a
head, the outcome is the tail and I had placed the bet of 1 million dollars,
I have just lost one million dollars, this is the power of future where the
outcome is not known. Similarly, in the game of roulette there are 37
outcomes and just before spinning the wheel and rotating the ball, the
future is not known, that's uncertainty.

10 | Risk Management in Current Scenario