In our complex, competitive, and global business environment, risk management is a necessary and critical function for a company’s survival. Risk analysis identifying the perils an organization is exposed to, as well as the placement of the proper insurance coverage to cover losses from these perils when the unexpected happens, is as important as product development, marketing, and sales.
Insurance products are designed to cover risk or series of risks either in the form of standard industry all-risk policies (subject to the exclusions) or manuscript type policies that are written in a specific manner to cover a unique insured’s exposure. In both cases either in-house (staff employee) or an outside risk manager is charged with the responsibility of determining the necessary insurance coverage to cover the risk or provide advice on the recommended financial funds that need to be set aside to cover an expected loss. Clearly, this is a very big responsibility requiring a great deal of experience and training.