Answer to Question #286497 in Management for Lisisia

Question

Discuss why insurance and risk management is important to businesses and the economy. (18 marks)

Answer 1

Insurance and risk management helps identify potential risks in advance, analyzing them and taking precautions to reduce the risk. This is important to a business as it helps in preventing the projects from harmful effects of the environment, culture, financial or any other risks that a business project may suffer from. risk management is an important process for a business and the economy as it empowers a business with the necessary tools for identifying and dealing with potential risks and ensures businesses in an economy remain profitable.