Several aspects of religion may be described in terms of their risk dimensions. Empirical evidence supports the hypothesis that increasing concern with religious values reflects greater concern in society with subjective risk.

Insurance companies are prone to many risks in running the insurance business which can be classified as (a) Insurance Risks: Insurance risks such as product risk being priced inappropriately or mis-sold to the customers and the risk of the entity not being adequately insured. (b) Financial or Investments Risks reflect the exposure of the business to the performance of the investment market. Investment risk include equity/property risks, currency risk, interest rate risk, credit risk, liquidity risk or the asset liability mismatch risk. (c) Strategic risks arising from the inability to adapt to change in the business environment including economic changes, changes in competition, social change, regulatory change, operational risks.

It is a view held by some Authorities that “strategic management” would be a better term in place of “risk management” in order to describe and explain the management techniques suitable for any types of uncertainty. Strategic management, in its broader sense would differ from risk management of exposures to accidental losses (a) Strategic management encompasses both pure and speculative risks with equal importance, (b) Strategic management aims at growth of an organization to fulfill its full productive potential (c) Strategic management focuses on an organization as a whole and not only on loss exposures. Thus, risk management of exposures to accidental losses can be viewed as part of strategic management and therefore becomes an independent discipline and part of the more generic strategic management. As against, the major Risk Management objectives for an enterprise can be mere survival, peace of mind, lower risk management costs and thus higher profits, fairly stable earnings, little or no interruption of operations, continued growth, satisfaction of the firm’s sense of social responsibility or desire for a good corporate image, satisfaction of externally imposed obligations (e.g., legislative requirements). “Risk Management” is as such become a popular term. Its use has grown as experts in multiple fields have recognized their inability to precisely predict outcomes in specific situations within their areas of operation.

Risk management is the process of making and carrying out decisions that will minimize the adverse effect of accidental losses upon our company. The risk management process is vital to the personal health and safety of employees and the safety of the public. In financial terms, it is vital to our ability to pursue our goals, commence and operate programs, and to perform duties in an efficient and professional manner.The senior management of organization has formed a risk management program to pursue our risk management goals and objectives. These goals and objectives include:
Avoiding exposure to accidental loss by not undertaking functions, contracts, programs or activities where the potential loss is greater than the potential benefit to be derived from these undertakingsPreventing loss by identifying loss exposures and implementing policies and procedures to reduce the risk of these losses occurringControlling losses that do occur by: Assisting and supporting injured parties Developing contingency plans for possible loss scenarios Proper documentation and investigation of lossesDetermining the most cost effective balance of different risk financing tools.Raising the awareness of all board members, senior managers, employees, volunteers and residents concerning risk management within our organization. These goals and objectives will be accomplished by: Establishing a Risk Management Committee with representatives from each department, whose responsibilities will be to implement, monitor, evaluate and revise plans to achieve our goals and objectives Electing a Risk Management Coordinator to serve as the head of the Risk Management Committee and report to the council Including risk management as an item for discussion at every staff meetingCooperation is needed, and expected, from all management and employees. Only by working as a team with common goals and objectives can we ensure the success of this risk management program.

Risk Management: Reputation Risk Management: Reputation risk is the risk of loss resulting from damage to a company’s reputation, in lost revenue or destruction of shareholder value, even if the company is not found guilty of a crime. Reputation risk can be a matter of corporate trust but serves also as a tools in crisis prevention. Usually reputation risk is informational in nature and could be difficult to realize financially. Extreme cases could even lead to bankruptcy. Factors influencing reputation are (i) brand (ii) financial strength (iii) Leadership and management (iv) quality of products and services (v) risk management (vi) work place culture (vii) corporate social responsibility (viii) media coverage (ix) crisis management (x) customer relationship and (xi) mission and values.

Reputation Risk Management is a set of actions and policies taken and established while reputation problems are still latent in order to reduce the probability and/or the expected costs of latent reputation problems materializing. Example of potential internal reputation risks are lack of coherent strategy, corporate responsibility issues, bad quality of service, work stress environment, management related issues, internal fraud, corruption/money laundering, data privacy issues, misspelling practices. The external reputation risks are natural catastrophes, cybercrimes, regulatory and market environment and change in consumer behavior.

Reputation Risk Management like Risk Management framework requires (a) early identification of potential reputation risks and tracking of current risks (b) monitoring of potential and actual reputational risks (c) risk assessment (d) Risk prioritization (e) Actions to mitigate risks.

Risk Management Versus Anti-money laundering related risks : Anti money laundering as a risk category came into focus from 2001 after the vulnerability of financial sector money laundering was considered as a serious issue globally. IRDAI has prescribed the framework for controls from AML Angle. Verification of customer KYC, training of employees and sales force, monitoring of customer transactions, system of generation of alerts for suspicious and cash transactions are some of the key controls prescribed. Whilst internal controls can be managed it is the external controls such as field practices of sales persons are required to be monitored. Risk Management and Rick control units must have strong supervision on the field practices and advice management of the controls to be put in place. AML violations are in high risk category.

Risk Management Versus Business Continuity and Disaster/Emergency/Catastrophe – Recovery Planning: Catastrophe, disaster and emergency, Management – all of these terms are low frequency high severity which may lead to: substantial loss of life, high value property damage, long interruption periods and all other associated effects.

Catastrophe, disaster and emergency – all of these terms are low frequency high severity which may lead to: substantial loss of life, high value property damage, long interruption periods and all other associated effects.

Risk managers are responsible for managing the risk to the organisation, its employees, customers, reputation, assets and interests of stakeholders. They may work in a variety of sectors and may specialize in a number of areas including: Enterprise risk; Corporate governance; Regulatory and operational risk; Business continuity; Information and security risk; Technology risk; Market and credit risk. ResponsibilitiesSpecific tasks depend on the industry in which a Risk Manager is working, how specialized his role is and the level at which he is working. However, key activities may include: Planning, designing and implementing an overall risk management process for the organisation;Risk assessment, which involves analyzing risks as well as identifying, describing and estimating the risks affecting the business;Risk evaluation, which involves comparing estimated risks with criteria established by the organisation such as costs, legal requirements and environmental factors, and evaluating the organization’s previous handling of risks;Establishing and quantifying the organization’s ‘risk appetite’, i.e. the level of risk they are prepared to accept;Risk reporting in an appropriate way for different audiences, for example, to the board of directors so they understand the most significant risks, to business heads to ensure they are aware of risks relevant to their parts of the business and to individuals to understand their accountability for individual risks;Corporate governance involving external risk reporting to stakeholders;Carrying out processes such as purchasing insurance, implementing health and safety measures and making business continuity plans to limit risks and prepare for if things go wrong;Conducting audits of policy and compliance to standards, including liaison with internal and external auditors;Providing support, education and training to staff to build risk awareness within the organisation.Risk, Transfer ; Risk transfers could be risk control measures or risk financing measures. Risk control transfers (i) shift the property or activity itself to someone else, (ii) eliminate or reduce the transferor’s responsibility for losses to the transferee, or (iii) cancel obligations that the transferor has assumed for losses to others. Through risk financing transfers, the transferor seeks external funds that will pay for the losses that do occur. Risk financing transfers could be transfer of risk to the Insurers or non-Insurance transfers. Non Insurance transfers differ from Insurance in that the transferees (i) are not legally Insurers, and (ii) usually do not accept enough, exposure units for their losses to be fairly predictable.