Understanding Risk in the Insurance Industry
Risk is the fundamental concept underpinning the entire insurance industry. Without risk, there would be no need for insurance. Risk is defined as the chance of loss or damage, an uncertain event that may occur and result in economic imbalance for the individual or entity that suffers it.
Characteristics of Insurable Risk
For a risk to be considered insurable, it must typically meet the following characteristics:
- Be possible events (they may or may not happen).
- Be lawful acts (within legal boundaries)
Key Approaches to Organizational Transformation
Driving Organizational Change: Modern Approaches
The need for change and increased competitiveness led to the arrival of many different approaches to solve organizational crises:
Just-in-Time (JIT)
A set of principles and techniques inspired by Japanese industrial organization, focusing on simplifying procedures, reducing costs, and improving product quality. JIT was the first significant impact that shook the industrial thought established by Adam Smith, rationalized by Frederick Taylor, and implemented
Read MoreProject Life Cycle Stages & Investment Analysis
Sequence of the Project Life Cycle
The project life cycle begins with the visualization and in-depth analysis of a problem, culminating in the identification and implementation of the best solution.
Pre-Investment Stage
This stage encompasses the formulation and evaluation processes for studies supporting a project. Its purpose is to solve a specific problem or address an identified need.
Phases of Pre-Investment:
- Idea: Identifying the core problem to be solved and brainstorming potential solutions.
- Profile:
Knowledge Management: Systems, Roles, and Business Value
The Role of Knowledge Management in Business
Knowledge management is a set of processes designed to create, store, transfer, and apply knowledge within an organization. A significant portion of a firm’s value hinges on its ability to effectively create and manage knowledge. Knowledge management promotes organizational learning by enhancing the organization’s capacity to learn from its environment and integrate knowledge into its business processes.
Major Types of Knowledge Management Systems
There
Read MoreStandard Costing Principles and Practice
Standard Costs
Cost Basics
Real Costs
Real Costs are historical costs that have been incurred in a prior period.
Default Costs
Default Costs represent a system in which costs are determined before the start of production activities for identification, classification, and control. They are classified as:
Estimated Costs
Estimated Costs represent the amount which the company anticipates a product or a process operation will actually cost for a certain period.
Standard Costs Defined
Standard Costs are scientifically
Read MoreUnderstanding Workplace Grapevine Communication
The most vital element of an organization is its staff management technique. Grapevine is a tool available to management that can provide influence over employees without causing bitterness. It offers an alternative path for exchanging information without following the tedious formal communication paths. It is neither pre-planned nor deliberately initiated by management. It is not written but oral. Furthermore, it is not confined to a particular direction, but spreads like a grapevine. The formal
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