The Discipline of Insurance and Risk Management is informed by the four key areas in which risk is manifest, namely the risk of loss or damage to Property, Injury, Loss or Death to People, Illness, and Living too Long.
Insurance and Risk Management teaches the theory of managing risk, short-term insurance, life insurance, retirement funding and medical insurance. The practice of identifying and analyzing loss exposures and taking steps to minimize the financial impact of the risks they impose. Traditional risk management, sometimes called “insurance risk management,” has focused on “pure risks”
From a financial standpoint, the steps in managing these risks are straightforward:
1. Identify the risk – in common words, what do you fear?
2. Determine how much of this risk you can bear
3. Insure the remainder of the risk