INSURANCE AND RISK MANAGEMENT

The entire business process has to face numerous risks and uncertainties. Uncertainty comes from changes in economic, social and political trends (such as .a spike in oil price or interest rates), the arrival of new technologies (like the internet), or shifts in consumer demand (preference for personal computers Day-Glo Colors versus traditional beige). Thus in business, as in private life, there are dangers and risks of every kind. The concept of risk may be explained as the possibility of unfavorable results following any occurrence. Risks arise due to uncertainties in regard to cost, loss or damage. The loss or damage may be related to financial loss or non-financial loss. In a dynamic and free economy and in life such risks are inevitable. In business risks include changing demand and fashions, price falls, change in desire and taste of consumers, change in the market conditions, high competitions, new inventions and their development, fire, flood, accidents etc.,