Home » Accounting » ASSESSMENT OF ADEQUATE RISK RECOGNITION AND MANAGEMENT IN NIGERIAN INSURANCE COM...
ASSESSMENT OF ADEQUATE RISK RECOGNITION AND MANAGEMENT IN NIGERIAN INSURANCE COMPANIES
Sold By: Joe Project Store | Item Type: Project Material | Report this? | Attributes: 75 pages | 1-5 chapters | Amount: ₦5,000 | Marked useful: 4,785 times
Delivery: Within 24 hoursASSESSMENT OF ADEQUATE RISK RECOGNITION AND MANAGEMENT IN NIGERIAN INSURANCE COMPANIES (A CASE STUDY OF LEED ASSURANCE COMPANY, UYO)
THE CONCEPT OF RISK
Risk has been the subject of study by different scholars over the years with several meaning and definitions. But the most accepted definitions are that of J.E Banister and P.A Bawcutt (1980). They define risk as follows:
- Risk is the object doubt concerning the outcome of a given situation.
- Risk is the uncertainty as to the occurrence of an economic loss.
- Risk is the combination of hazards.
- Risk is the chance of loss.
- Risk is the uncertainty of financial loss.
- Risk is the uncertainty in respect of future earning, cash flow and the assets of undertaking.
- Risk is the possible outcome which may occur at some future time.
- Risk is the probability of adverse returns from investment.
However is can be insured in the insurance industry in order to reduced losses. Because the insurer does not eliminate loss and cannot stop disaster or misfortune from happening but helps to compensate the victim.
2.2Â TYPES OF RISK
The following are some types of risk that can be insured. According to David L. Bickel Haupt (1974) these include;
- Speculative Risk: This can occur as a result of gain or the possibility of loss. Many business risks fall into the category of speculative risk, such as risk associated with changes in customers taste, change of government policy, price of raw materials availability of foreign exchange etc.
- Fundamental Risk: This arise from social, economic and political pressures occurring within the society and from purely physical phenomena that affects whole community. Such as technology, unemployment, war, inflation, political instability, flood, windstorms, drought volcanic, earthquakes etc.
- Particular Risk: This are personal risk arising from individual event such as the burning of house, robbery of a bank and an act of personal negligence.
- Systematic Risk: This type of risk affects all companies either big or small, as a result of the system in which the company operates. Its an uncontrollable risk which cannot be prevented from happening. Examples are interest rate, inflation rate, competition, legal environment, cultural environment, demand and supply etc.
- Unsystematic Risk: This is an internal risk, that is peculiar to a particular companies. Example is fire disaster, fraud, strike, bank robbery etc.
2.3Â SOURCE OF RISK
The following are some common source of risks. James S.T Satldra G.G and Robert E.H (2001) state some of those source of risk. These consist of:
- Property Risk: Business that own rent or use property may be damaged, destroyed or stolen. If the damage is extensive, the business may be shut down temporarily thereby incurring a loss as a result of replacing the damage property.
- Liability Risk: This occurs as a result of payment made to compensate injured parties as well as to punish those responsible for the injures, even when an individuals is eventually absorbed of its liability.
- Financial risk: This is a risk that is speculative in nature and can impact on firm’s earnings. Examples of those financial risk include credit risk, foreign exchange risk, commodity risk and interest rate risk
This material content is developed to serve as a GUIDE for students to conduct academic research
Delivery: Within 24 hours
Advertise Here
Not what you were looking for? Perform a search
What's your project topic?
Comment on Facebook:
Related Project Materials
- 1.
EFFECT OF UNETHICAL ACCOUNTING PRACTICES ON FINANCIAL REPORTING QUALITY OF MANUFACTURING FIRMS IN NI...
CHAPTER ONE INTRODUCTION 1.1 Background of the study Over the past decade, there has been a significant global concern regarding the persistent use...More »
Item Type: Project Material | 54 pages | 952 engagements |
- 2.
OFFICE POLITICS AND STAFF PRODUCTIVITY IN PUBLIC ORGANIZATION: A STUDY OF USSA LGA TARABA STATE FROM...
OFFICE POLITICS AND STAFF PRODUCTIVITY IN PUBLIC ORGANIZATION: A STUDY OF USSA LGA TARABA STATE FROM 2013 2017 CHAPTER ONE INTRODUCTION 1.1 Backgro...More »
Item Type: Project Material | 54 pages | 532 engagements |
- 3.
ANALYSIS OF AUDIT PROCEDURES IN CAMEROON'S PUBLIC SECTOR
CHAPTER ONE INTRODUCTION 1.1 Background of the study The administration and oversight of public sector funds has been a persistent worry for the gener...More »
Item Type: Project Material | 54 pages | 584 engagements |
- 4.
ANALYSING THE IMPACT OF LEGAL AUDIT REQUIREMENTS ON AUDITOR PERFORMANCE IN CAMEROON
CHAPTER ONE INTRODUCTION 1.1 Background of the study The extensive body of literature on behaviourist management control and information asymmetry spa...More »
Item Type: Project Material | 54 pages | 552 engagements |
- 5.
AN EXAMINATION OF EFFECTIVE AUDIT SYSTEM AS A PREREQUISITE FOR IMPROVING CORPORATE ACCOUNTABILITY (A...
CHAPTER ONE INTRODUCTION 1.1 Background of the study Society supports the survival and expansion of economic enterprises by furnishing them with fi...More »
Item Type: Project Material | 54 pages | 606 engagements |
- 6.
AN EVALUATION OF THE FACTORS INFLUENCING AUDIT QUALITY OF BUSINESS ORGANIZATIONS IN CAMEROON (A CASE...
CHAPTER ONE INTRODUCTION 1.1 Background of the study The current evolution of the company landscape has demonstrated a growing demand for the imple...More »
Item Type: Project Material | 54 pages | 615 engagements |