Risk Management, Business Continuity, and Emergency Management

Abstract

The most productive way of handling unavoidable risks is to manage them as well as possible. Hence, the term risk management has evolved. Risk management makes the most efficient before-the-loss arrangement for an after-the-loss continuation of a business. Insurance is a major risk management tool. The risk manager's job varies with the company served. He or she may be responsible for insurance only; or for security, safety, and insurance; or for loss prevention, insurance, investments, and business continuity. One important consideration in the implementation of a risk management (or loss prevention) program is that the program must be explained in financial terms to top executives. Within the risk management process, and before a final decision is made on risk management measures, the practitioner should consider the some tools for dealing with risk that include : risk avoidance, risk transfer, risk abatement, risk spreading, and risk assumption. It is found that an understanding of insurance rating procedures provides risk managers and loss prevention managers with the knowledge to propose investments in fire protection that can show a return on investment. The chapter also describes business continuity, and emergency management to understand the role of government in emergencies.