In risk management , a firm tries to minimize the amount of risk and the cost of that risk.
Insurance is a written contract , taken with the insuring company , that transfers the risk of loss to the insurer according to the terms of the contract.
2. Presented By
Rizwan Mahbub Khan
ID: 12132101051
Intake: 30th
Program: BBA
Department of Marketing
Bangladesh University of Business and Technology
(BUBT)
4. What is Risk Management ?
In risk management , a firm tries to
minimize the amount of risk and the cost of
that risk.
5. Types of Risk Management
Financial Risk Management : The process of financial risk
management can be defined as minimizing exposure of a firm to market risk
and credit risk using various financial instruments.
Market Risk Management : Enterprises need to understand the
risks present in the market , inherent to the industry or arising out of
competition. Enterprise need to properly assess it and develop their capabilities .
Technology Risk Management : It is the process of
managing the risks associated.
6. Types of Risk Management
Credit Risk Management : Managing credit risk is one of
the fundamental work of the financial institution. Credit portfolio
management is largely becoming essential for the enterprise to keep
track of risk.
Commodity Risk Management :It Handles different
types of commodity risks, such as price risk, political risk, quantity risk and
cost risk.
Bank Risk Management : It Deals with the handling of
different types of risks faced by the banks , for example, market risk,
credit risk, liquidity risk, legal risk, operational risk and reputational
risk.
7. Advantages of Risk Management
Risks are sorted by their financial impact, assets by their
financial value.
Data accuracy improves as the organization gains
experience.
Management performance can be closely watched.
Security level is better determined based on the three
elements: availability, integrity and confidentiality.
This approach makes easier to understand and
observe the level of risk.
The most important areas of risk are evaluated.
8. Disadvantages of Risk Management
The methods of calculation are complex.
The Risk Management process handles a long time and the process
is very complex reduce this problem.
Without financial tools the process can be really difficult to solve this
problem .
The performance of risk management are hard to follow because of
their subjectivity.
The evaluation of risk and its result are uncertain.
9. What is Insurance Business ?
Insurance is a written contract , taken with the insuring
company , that transfers the risk of loss to the insurer
according to the terms of the contract.
Right now in Bangladesh all insurance company are
following the act of 1938.
In Bangladesh insurance companies are controlled by IDRA
(Insurance Development & Regulatory Authority).
10. History of Insurance in Bangladesh
Bangladesh Insurance business increased for the
duration of 1947-1971, when there are 49 insurance
companies operate their business both life and general
insurance.
After liberation war in 1972 The People's Republic
Government of Bangladesh nationalized the insurance
industry along with the banks in 1972 by Presidential
Order No. 95
11. Different types of Insurance Business
1. Life insurance : It is a contract between an insurance policy
holder and an insurer , where the insurer promises to pay a designated
beneficiary a sum of money in exchange of a premium , upon the death of
and insured person.
12. Different types of Insurance Business
2. Property insurance : it provides protection against most risks
to property , such as fire ,theft and some weather damage .
13. Different types of Insurance Business
3. Motor insurance : A motor insurance policy is mandatory
policy issued by an insurance company as a part of prevention of public
liability.
14. Different types of Insurance Business
Fire insurance : Fire insurance is insurance that is used to cover
damage to a property caused by fire .
15. Different types of Insurance Business
Heath insurance : Health insurance is a type of insurance
coverage that for medical and surgical expenses that are incurred by that
insured .
16. Different types of Insurance Business
Marine insurance : covers the loss or damage of ships, cargo,
terminals, and any transport or cargo by which property is transferred,
acquired, or held between the points of origin and final destination.
17. Problems of insurance business
Less public awareness : A large number of people are left
from the insurance coverage. They don’t have the minimum idea about
insurance and the benefits from the insurance policy.
Centralization : Most the insurance company are located in urban
areas. They don’t think that a large number of people also lived in rural
areas.
Lack of qualified officials : Insurance company performing their
business by their marketing agent. But sometimes they are unable to
convince their customer because the lack of proper training.
18. Problems of Insurance Business
Too much complexity : To taken policy there bare a huge4
number of rules and regulations. This huge types of rules and regulations
makes feeling irritate the customer.
Insufficient service : right now in Bangladesh the insurance
company are failed to provide better service to the mass people. That’s
why the customer losing their interest from insurance business.
Lack of information technology : Some insurance company
don’t have their personal email or web address that’s why the customer
can’t collect their proper information.
