At the Axis Insurance Group we pride ourselves on our knowledge of insurance. We are also happy to discuss risk in its purest, broadest context and offer risk management advice.
Insurance is a risk transfer mechanism, whereby for a given premium, a contract is purchased by a policy holder which protects that entity or individual for certain risks as defined by the contract. No policy of insurance covers every single risk to which the entity/person is exposed but it does offer “Sleep Easy” protection against many of the more common exposures, fire or theft being typical perils covered for example.
In contrast to insurance, risk management deals in the realm of every risk to which an entity/person is exposed and provides many solutions to dealing with that risk. Insurance as a risk transfer mechanism is just one way of dealing with certain perils, whilst risk control to stop losses or risk financing to pay for retained risk would be other methods.
Many of the larger public/private companies, government or crown corporations in our economy retain the services of on staff risk managers. These individuals are responsible in a full time capacity for dealing with the risk exposures to which an entity is subjected. There skills in the risk management process enable them to analyze the operations of their organization with a view to establishing a scientific strategy of dealing with all the risks to which that entity is exposed.