"Risk" is the potential loss or an undesirable outcome resulting from a given action, activity and/or inaction. Potential losses themselves may also be called “risks”. 'Risk Management' is an integrated process which helps you to identify, classify, analyze and quantify the financial impact of various risks involved in running a business. It is a tool that recognizes the potential threats to the business's objectives or to
entrepreneur and allows you to make informed decisions on the appropriate course of action, be it to moderate, transfer or allocate capital to the risk.
In October 1999 the Reserve Bank of India suggested the following broad categories for risk classification :–
• Credit Risk: These are the risks arising due to default by a change in credit rating of those to whom the company has an exposure. They include insurances and reinsurance companies, companies in which the insurer has invested its funds.
• Market Risk: These are risks to invested funds, arising due to movements in the level of financial variables such as interest rates, share prices etc. They include Liquidity Risk, Interest Rate Risk, Foreign Exchange Rate Risk, Commodity Price Risk, Equity Price Risk.
• Operational Risk: Operational risk is the risk of direct or indirect loss resulting from inadequate or failed processes of people and systems or from external events.
All of these above mentioned risks can be eliminated or minimized by LIC policy. For more details please contact us(For more details may contact Pijush Kanti Sen, +91 9830060640, email@example.com) and one of our representative will provide you with vivid description as per your need.