Role of risk management on economic growth: A critique of literature

Abstract

Risk management is defined as the sequential planning and implementation of initiatives and programs to cope with institutions' and individuals' substantial losses and loss exposure and to secure their properties. The study aims to evaluate risk management's role in economic growth. This was executed through the use of a desktop literature review. The use of Google Scholar was utilized to locate seminal references and journal articles that were pertinent to the study. Papers published within the past five years were used to meet the inclusion criteria. One of the principal objectives of a risk management strategy is to identify risks, address risks, and eliminate risk items before they are deemed detrimental to a company's progress or a significant component of expensive modification to a company's processes. According to the study's findings, insurance companies benefit from economic expansion in their roles as institutional investors and as providers of insurance risk management and indemnification. The paper recommends that the government develop better mechanisms to substitute disaster victims for their losses. At the same time, public sentiment would compel the nation to implement ways of reducing the burden of catastrophes on the public treasury. The enactments that would follow would pave the way for the nation's brilliant economic growth and development. Furthermore, insurance companies must also participate in insurance venture that is both environmentally and client-friendly and also formulate insurance initiatives that can cover every segment and section of the economy.