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Using Good Insurance Policies could AVOID the Risk (TRUE/ FALSE)??
First we must check both's meaning.
Risk is the chance of having loss and Insurance is an agreement between parties to undertake risk of one party by receiving a consideration amount of premium.
So having an insurance means we transferred the risk to the insurance company by paying premium. There we don't have any risk anymore
Yes, that's true.
Insurance companies use a methodology called risk assessment to calculate premium rates for policyholders. Using software that computes a predetermined algorithm, insurance underwriters gauge the risk that you may file a claim against your policy. These algorithms are based on key indicators about you and then measured against a data set to weigh risk. Insurance underwriters carefully balance the insurance company’s profitability with potential need to use the policy. Resources such as Moody’s Risk Analysis contain detailed data sets that help insurers segment potential customer groups’ predictive behaviors. For example, third-party software vendors can pull verified data from this source to quickly calculate decisions about the creditworthiness and risk assessment of certain subsegments of their audience.
TRUE.. A GOOD POLICY AVOID THE RISK..................
Hello Team,
We see them everywhere in our risk management world — the terms of art — “risk appetite and tolerance.” We are also seeing heightening obligations set by regulators and rating agencies guiding organizations to articulate their appetite for risk and tolerance of risk.
Research commissioned by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) urges an organization to “consider its risk appetite at the same time it decides which goals or operational tactics to pursue. To determine risk appetite, management, with board review and concurrence, should take three steps:
§ Develop risk appetite.
§ Communicate risk appetite.
§ Monitor and update risk appetite.
Three easy steps — but are they really? Things would be a lot easier if we could agree on what exactly “risk appetite and tolerance” means.
To express risk appetite, one has to truly understand strategic risks and create rules around which risks should be taken in order to achieve objectives.
Sometimes we can get overzealous with our risk taking, so it is prudent to give yourself a realistic cushion and set triggers to alert you when you are nearing unwanted risk thresholds.
Regards,
Saiyid
The statement is >>>>>>>>>>>>>>>> False.
One of the technique for Risk Management is through Transfer of risk and getting a good insurance policy only transfers the risk and does not eliminate risk.
Thanks.
Thanks for invitation
I am apologies to answer this question wait from answers specialist
True.
Usually, the best way to reduce risk is to take action yourself. For example, to reduce health problems, eat right, get plenty of exercise, get enough sleep, don’t smoke, avoid drugs and so forth.
But, since there is no way to avoid risk completely, a common approach is to buy a good insurance policy to help reduce or avoid the financial losses that can result from bad things that happen.
No. You cannot avoid the RISK but you can only reduce it.
Thank You All.
In fact the answer is FASLE
. Insurance can not avoid the risk r clear it
Since the risk rating value depends on both the effect and the estimation of being happened.. So the insurance could decrees only the effect by getting suitable compensations. However, this will not prevent the possibility of happening.
Thank You All
Its good to use a Insurance policies , True
