Page 201 - RISK Management IC 86

The Insurance Times

Q1. (b) What are the benefits of such a policy ?

Ans. The benefits of such a policy are :
(i) The statement gives recognition to the importance
of risk management function.
(ii) It indicates support from top management.
(iii) It ensures participation by all functional management
and risk management activities.
(iv) The helps the risk manager to perform this function
effectively as his or threat irresponsibility are clearly
defined.
(v) Top management is relieved of decision-making day
to day affairs of risk management.

Q1. (c) What are the disadvantages of such a policy?

Ans. The disadvantages of such policies are:
(i) if the statement is couched in broad terms the, it
may offer no guidance at all; if it is too specific, it
may pose constraints for effective risk management,
thereby inhibiting the use of initiative on the part of
respondents.
(ii) risk managers can loose the resourcefulness in order
to be within the strict framework of the policy.

Website: www.bimabazaar.com Call: 033-22184184 / 40078428 202

Copyright@ The Insurance Times. 09883398055 / 09883380339