What does Risk Management mean? Read on to discover the definition & meaning of the term Risk Management - to help you better understand the language used in insurance policies.
Risk management (RM), in the context of insurance, is a process in which an analyst goes over data and decides whether or not providing insurance to a potential policyholder is a wise investment or not. Without having a strict handle on this process, a company can end up incurring serious losses. Risk management involves determining the possible risk, investment, and earnings based on data provided by potential clients through the application process.
More Insurance Terms And Definitions
The Merriam-Webster Dictionary defines insurance as:
b: Coverage by contract whereby one party undertakes to indemnify or guarantee another against loss by a specified contingency or peril.
c: The sum for which something is insured.
We hope the you have a better understanding of the meaning of Risk Management. If you are looking for the meanings of other important insurance terms and their definitions, just click on the letter below to find the words & concepts you are looking for: