A STUDY ON THE RISK MITIGATION BY THE INSURER AND QUALITY MAINTENANCE

Abstract

The business world is dynamic and full of risks
or uncertainties. Risk is the result or effect of
happening of any unforeseen event. The future is
unpredictable and full of uncertainties. Risks are
inherent in economic, political, social,
environmental and business activities. Risk is
common in day to day life. All precautions are
adopted in protect against unforeseen risks.
People find out means to minimize the effect of
risks. Burden of risks is the greatest problem in
connection with risk management. This is
because, it relates to risk of some financial loss.
The risks occur due to multiple causes.
The risk may be classified as
financial and non – financial risks, individual
and group risks, pure and speculative risks,
static and dynamic risks, quantifiable and non –
quantifiable risks. Pure risks are generally
insurable in nature. “Prevention is better than
cures”, preventive measures are undertaken to
minimize risk.