Risk Management

As an organization, company in general have the purpose in risk management implementation. The purpose wishing to be reached for example is : expenditure, prevent company of failure, boost up advantage of company, depress the production cost etc.

What is ‘risk management’?

Risk management is processing management of the risk include;cover identify, evaluation and operation of risk able to menace the continuity of corporate activity or effort.

Any kind of phases in risk management?

The steps which is passed by company in risk management implementation to identifying beforehand the risks possibly will be experienced of by company, after identifying hence evaluate to the each risk evaluated from severity (risk value) and his frequency.

Last phase is operation of risk. In phase operation of risk differentiated become 2 namely operation of physical (risk eliminated, risk minimalism) and operation financial (under arrest risk, risk transferred).

risk mean to abolish all possibilities the happening of loss for example in riding the car in the rains, speed of vehicle limited by maximum 60 km/hour.

Minimalism risk done with efforts to minimize loss for example in production, opportunity the happening of deductible failure product with qualified control (quality control).
Detain by self risk mean to account entirety or some of risks, for example by forming the reserve in company to face the loss will happened (retention alone).

Is while divert/transfer risk can be done by removing loss/risk the possibles happened to other party, for example company of insurance.

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Understanding and Principle Risk

In everyday life often we hear the term ‘risk’. Assorted of risk, be like burning risk, bumped by the other vehicle in road, risk hit by the the floods in the rains etc, can cause we account loss if the risks we don't anticipate from early. Question hereinafter is, what is understanding of ‘risk’, especially in insurance?

What is ‘risk’?

Understanding ‘risk’ in insurance is “uncertainty there will be its an event able to generate economic loss”.

Any kind of that risk forms?

The risk forms for example pure risks, speculative risk, risk particular and basal risk.

Pure risk is the risk as a result there's only 2 kinds of: loss or break even, theft the example, burning or accident.

Speculative risk is the risk as a result is 3 kinds of: loss, profit or break even, gambling the example. Risk particular is the risk coming from individual and his impact local, plane the example fall, aground ship and car collision.

Is while basal risk is the risk not coming from individual and his impact wide, hurricane the example, floods and earthquake.

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Elementary Principle of Insurance

In the world of insurance is be 6 kinds of elementary principle to be fulfilled, that is insurable interest, utmost good faith, proximate cause, indemnity, subjugation and contribution.

Insurable interest

The right to insure, arising out from a finance relation, among the insureds with insured and confessed judicially.

Utmost good faith

An action to lay open in accurate figure and complete, all the is facts of material (material fact) concerning something that will be insured by them the good asked and don't. Mean is : the underwriter have to admittedly explain clearly everything concerning broadness term from insurance and the the insured also have to give correct and clear description to the object or underwritten importance.

Proximate cause

This is an active cause, efficient which generate enchain the occurrence generate an effect without existence of intervention the starting and active from independent and new source.

Indemnity

A mechanism where underwriter provide the compensation financial in the effort its place the insured in the financial position he have momentary before the happening of loss (KUHD section of 252, 253 and assured in section of 278).

Subjugation

Transferring rights claim from the insured to underwriter after claim paid.

Contribution

Beside this mean underwriter rights to invite the other underwriter which both of the same accounting, but don't have to is same of his obligation to the insured to follow to give indemnity.

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Understanding of Insurance

Insurance

Insurance is one of form operation of the risk done by transfer risk from one party to other party in this case is company of insurance.

What is understanding of insurance?

According to KUHD section of 246 mentioned that “insurance or responsibility is an agreement by which a underwriter bind itself to a the insured, by accepting a premium, for replacement to it because an expected by advantage loss or damage the possibly will be suffered by it because the event don't certainly”. The other meaning of insurance is what overflows risk of first party to other side. In case overflows mastered by orders punish and the applying principal him and also the teaching is universal which embraced by first party and other party.

From economic facet, insurance mean a gathering of fund able to be wearied to close or give the indemnification to natural people loss.

What is benefit of insurance?

Beside as a form of operation of risk (financially), insurance is also have various the benefit classified into : fundamental function, secondary function and additional function. Fundamental function of insurance is as transfer of risk, gathering of well-balanced premium and fund. Secondary function insurance is to stimulate growth of effort, prevent loss, operation of loss, have the social benefit and as saving. Is while additional function of insurance is as fund investment and invisible earnings.

Do all risks can be insured?

Don'T all risks can be insured. Risks able to be insured is : risk able to be measured with money, homogeneous risk (same risk and quite a lot guaranteed by insurance), pure risk (this risk don't deliver advantage), risk particular (risk of individual source), risk that happened suddenly (accidental), insurable interest (the insured have importance to the object responsibility) and the risk not illegal.

What is agreement of insurance?

Insurance Agreement is agreement in the form of the is insurance policy book of its contents explain the the parties rights and obligations for example the side buy protection of insurance (client) and the side publish the insurance policy (Company of insurance). Become the rule of the game and its procedures clear in writing in the insurance policy book, when one of them doing wan achievement or break a promise hence the side in harming can claim his rights into civil jurisdiction, if there are any deception element hence can in litigate at criminal justice.

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