Risk Identification: It means to identify the sources & reasons of expected losses. There are various methods of identifying exposures. For examples, comprehensive checklist of common risk exposures can be obtained from risk management consultants & other sources. Loss exposures can also be identified through analysis of firm’s financial statements, discussions with managers through the firm, surveys of employees & discussion with the risk management consultant & insurance agents. Regardless of the specific method used, risk identification requires an overall understanding of business & specific legal & regulatory factors that affects the business.
One method of identifying individual exposures is to analyze the source & uses of funds in the present and planned for the future. Potential events that decrease in availability of funds or increase in the uses of funds represent risk exposures.
good effort
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