Explain in detail how a risk manager can make optimal use of insurance Essay

Explain in detail how a risk manager can make best use of redress as part of an overall risk management strategy - Essay exerciseA considerable number of companies have confused equipment, buildings, and materials to natural disasters. In addition, many companies have lost human resources, as well as revenues as they could no longer manufacture goods and services. The four conduct strategies for risk management include risk financing, loss reduction, loss prevention, and risk avoidance (Iverson 2013, p. 2). Even though some businesses can assume, reduce, or even avoid certain risks, few business organizations can amply protect themselves without purchasing insurance. Overall, a risk manager can effectively make use of insurance as part of a general risk management strategy to check into sustainability and profitability of the business. closely companies greatly benefit from taking their risks into consideration when they be performing extremely well, as well as when markets a re rapidly growing. Accordingly, the companies can sustain growth and profitability (Andersen 2010, p. 1). A risk manager plays a vital role in predicting and enacting measures that would help prevent or control losses within the company. The procedure of risk management involves identifying various exposures to potential losses, measuring the exposures, and making an informed decision about the close suitable approach to protect the company from losses or harm, considering the nature of the risks and the goals and resources of the company (Andersen 2010, p. 1). Some risks are more important than others. Therefore, the risk manager must determine the importance as well as ability of each risk while identifying and evaluating exposures.The goals and resources of a company are vital to selecting the best rule for preventing or controlling risks. However, the risk manager must monitor the method already selected and implemented to ensure that it generates or produce the projected ou tcomes. In general, company risks fall under five broad categories