Learning from History-A Risk Management Perspective

5 Pages Posted: 22 Jul 2021

See all articles by Sonjai Kumar

Sonjai Kumar

Fortune Institute of International Business

Date Written: July 19, 2021

Abstract

Though risk management and its application in the corporate world are new, its essence is very old. One must remember that risk is always about the future and the future is always unknown. There is no idea what will unfold in the future, however, some ideas about the future can be assessed based on past data, present information, and judicious judgment about the future. In the life insurance business which is about long-term assessment of risk is based on similar methodologies. Life insurance businesses have been successful throughout the world based on actuarial principles.

To address any risk, it is very important to first identify the risk, assess its likely impact, and plan for preventative action now, to minimize the impact of the risk, should risk materializes. Risk assessment requires a mindset with a vision to anticipate the future based on certain key risk indicators of the present which always emanate important information about the expected future.

In the very recent past we witnessed economic slowdown resulting from reduced economic activities, the key question that is addressed in this article is, could this have been anticipated to address the economic risks to take mitigating actions earlier than later

Keywords: Risk Management, Risk Mitigation, Enterprise Risk Management, Operational Risk, Risk Culture,

JEL Classification: G10, G20. G21, G22, G23, G24, G25, G26, G27, G28, G29

Suggested Citation

Kumar, Sonjai, Learning from History-A Risk Management Perspective (July 19, 2021). Available at SSRN: https://ssrn.com/abstract=3889557 or http://dx.doi.org/10.2139/ssrn.3889557

Sonjai Kumar (Contact Author)

Fortune Institute of International Business ( email )

Plot no 5, Vasant Gaon
Rao Tula Ram Marg
New Delhi, DE 110031
India
9810389622 (Phone)

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