The purpose of risk financing is to ensure that there will be enough resources (funds) to finance the recovery of any individual or organization from a risk event, and to protect their interest.
The following are areas of activities in which risk financing should at least be emphasised :
1. Evaluation of total values at risk
2. Estimation of total costs of risk which consist of :
- Cost of retained losses
- Cost of risk sharing scheme under Takaful
- Risk control and handling costs
- Risk management and administration expenses
3. Identification of appropriate sources of funding in advance of any loss. One of the sources could be proceeds from a Takaful Fund.
0 comments:
Post a Comment