Insurance Cover Essay 6
Insurance Cover Essay 6
Please answer these questions in your own words. Please do not copy word for word from any sites thank you very much.
1- Can insurance assist a business with the risks of direct foreign investments? If so, please share how insurance can be an effective protective strategy for a company involved in direct foreign investments?
2- As we all know insurance is a financial component of a business and of our life. We have the option to purchase insurance to retain money for our losses (i.e. claims). Insurance is a ‘catch 22’, one can purchase insurance and never file a claim. This appears as though we have made an unsuccessful decision with our money. However, if our building burns down, we are able to receive compensation for our loss.
3- Effective risk management will limit unnecessary costs such as waste, labor, and other costly assets. Managers need to identify and monitor possible threats (including human capital) before they harm a business. This is where insurance is imperative to have within a business. Class, do you agree or disagree? Please explain.
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