MANAGEMENT

Detailed explanation-1: -It involves taking steps to minimize the likelihood of things going wrong, a concept known as loss control. It also involves the purchasing of insurance to reduce the financial impact of adverse events on a company when, despite your best efforts, bad things happen.

Detailed explanation-2: -Insurance is only a portion of what Risk Management is all about. Whether a loss is insured or uninsured, a loss is a loss. The financial consequences of a loss will impact the organization and it may result in further significant costs such as repair, loss of income and additional expense.

Detailed explanation-3: -Insurance offers financial assistance and mitigates the risks that people and companies face throughout their existence. It’s an excellent risk-mitigation tool against incidents that could inflict financial hardship for people and businesses.

Detailed explanation-4: -Insurance pays for the damages if the risk were to occur. Risk management provides a clear and structured approach to identifying risks.