Page 155 - RISK Management IC 86
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The Insurance Times
Q1. Write short notes on :
a) Personal Risk Management - Risk Management
techniques are more easily applicable to large organizations
as they have more exposure units, financial strength and
technical expertise. However, small traders and individuals
can also apply risk management principles.
An individual is exposed to many types of risk that
affect his or his family's welfare, like :
(i) Death, sickness, and injury
(ii) Loss of or damage to property
(iii) Incurring liability to compensate others for personal
injury or damage to property
The occurrence of property damage and liability risks
result in reduction in the individual's wealth. Other risks
can also cause loss of income due to incapacity caused
by sickness or accident.
Sometimes additional expense may be incurred to minimize
such expenses, e.g, expenditure on medical treatment.
The cost of many losses though can be measured more
or less accurately, it is almost impossible to place a
monetary value on pain, suffering etc. No matter how
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