Page 146 - Risk Management in current scenario
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IMPACT ON INDIAN LIFE INSURANCE
PLAYERS IN THE PRESENCE OF
GLOBAL RISKS
Abstract
This article discusses the risks that may impact the Indian Life insurance
players if the global risk materializes and how those risks should be
analyzed through stress test and develop action plan for its management.
Introduction :
This article analyses the impact on the Indian Life Insurance players
resulting from Global risks exposure. The top five global risks (Economic,
Enviromental, Geopolitical, Societal and Technological) exposure are
highlighted by World Economic Forum ("WEF") every year since 2007. The
purpose of this article is to highlight how these risks may affect Indian
Life Insurance players if the global risks materialize. Therefore, as a part
of prudential risk management, insurance players may also consider the
impact of these risks on their portfolio during the business planning cycle
apart from considering local standard risks (insurance, financial,
operational etc).
Top five Global risks exposures :
The table below list down risks classified by likelihood and impact defined
by WEF under the four risks categories during 2015.
It may be noted that under the current world order, Geo-Political risk has
emerged as top contributor to risk both in terms of likelihood and impact.
144 | Risk Management in Current Scenario
