CONTENTS:- 1. Nature of Risk in Organisation 2. Limitations of Risk Management 3. Organizing and Dealing with Risk 4. Risk Management Business Models 5. Insuring a Loan Portfolio for Risk 6. Measuring and Monitoring Market Risk 7. Market Risk Exposures 8. Reducing Conflicts between Security Holders and Managers 9. Corporate Financing and Risk Management 10. Insurance as Strategic Risk Control 11. Practical Assessments of Risk for Businessman 12. Identifying, Measuring and Monitoring Liquidity Risk 13. Strategic Risk Control with Structured Liabilities
Risk management involves identifying, analyzing, and taking steps to reduce or eliminate the exposures to loss faced by an organization or individual. The practice of risk management utilizes many tools and techniques, including insurance, to manage a wide variety of risks. Every business encounters risks, some of which are predictable and under management's control, and others which are unpredictable and uncontrollable. Risk management is particularly vital for small businesses, since some common types of losses such as theft, fire, flood, legal liability, injury, or disability can destroy in a few minutes what may have taken an entrepreneur years to build. Such losses and liabilities can affect day-to-day operations, reduce profits, and cause financial hardship severe enough to cripple or bankrupt a small business.