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as changes in dependents. So in a way social security
provides partial risk reduction. Insurance can be bought
for additional protection. Whether insurance chosen is
adequate or not depends on the policy chosen with
respect to the individual's risks and financials.

The Corporate risk management process can be broken
down into three elements:
(i) Risk analysis - it again has two prime element:
(a) Identification of risk - which requires a thorough

knowledge of organization, the market in which it
operates, the legal, social, economic, political and
climatic environment in which it does business, its
financial strengths and weaknesses, its vulnerability
to unplanned losses, the manufacturing processes,
the management system and the business mechanism
by which it operates.

Any failure at this stage to identified any risk may
cause a major loss which can leave the organisation
exposed to the chance of bankruptcy. Risk
identification provides the foundation of risk
management.

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