The purpose of risk management is to reduce the group's exposure to financial liability as the result of accidental losses or other events causing potential or actual liabilities.
Insurance is a subset of risk management, and used as a tool to manage specific risks.
Examine the process management undertakes to identify and assess risks 2. Review the risks identified by divisions and determine whether all risks have been identified 3. Information required Obtain the schedule of insurance that summarises all policies. Insurance premiums are determined in part by industry classification. Review the current description of the business to determine whether it is appropriate given the current activities and structure of the business.