|
|
|
||
|
|
|||
|
October. 2005 |
|||
 |
|||
 |
The
President of Steele was invited to give a speech to nearly 30 people
coming from
more than 20 insurance companies in |
||
|
In
early September, all the employees of Steele had a happy trip to |
||
|
The
President of
Steele was invited to attend the annual conference of WAD held in |
||
|
|
|||
 |
From October 1, 2005, names of those
people who owe the banks money will be put in the “Black Name List”
of individual credit on the nationwide network. The People's Bank of China officially promulgated the <Provisional
Rules on Management of the Individual Credit Information Database>
and stipulated expressly for collection and use of
information on individual credit database in the commercial banks’ credit
information system in future. |
||
|
|
||
|
China
Life Insurance Company Limited and Shanghai Telecom Co., Ltd jointly
announced that the channel of buying insurance on telephone has been
opened in |
||
|
Taikang
Life Insurance Company has developed a new insurance product for Chinese
market which was called “Taikkang
Hengtai Guaranteed Annuity Insurance”.
Currently it is one of the annuity insurance products that have the
longest period for paying insurance to the clients. No matter the
customer is alive or not, he/she
will be paid the
pension for 20 years by a special pension account based on the
insurance. |
||
|
Information from CIRC (China Insurance Regulatory Commission): There is hope that the life expectancy table of life insurance originally planned to be worked out in 2006 will be officially put into practice this year. The prices of life insurance products will be revaluated with the practice of this table. |
||
|
Classification
of |
||
|
In
real operation, risks that companies face are in various forms. The
first stage of risk management is to properly classify all the risks.
Due to different standards of classification, it is very difficult to
conduct risk classification, which makes people puzzled about the
standards. Almost every book of risk management has its own theory.
Management of enterprise risk certainly has strong characters, and
different companies have their own stress. But from the general view of
risk management in company, risks can be classified by their characters
as follow: a. Harmful risk
Harmful risk, also called pure risk, refers to the risk that only has
the possibility of loss while without any chance of obtaining profits.
There are only two possible results of it: getting or getting no loss.
Since there is no possibility of profit, all we can do is to minimize
the possibility of loss as much as we can. However it is just the
theory. There is indeed cost in harmful risk control in practice. So
when the amount of the reduction of risk loss is less than the cost of
control, there is no need to control it. In this case, the harmful risk
management is to obtain the balance between loss and cost. The harmful
risks can be divided into two kinds: operational risk and
non-operational risk. Operational risk means the loss caused by the
internal management mistakes of a company. Non-operational risk means
the non-operation loss caused by the external environment of a company.
Non-operational risk can be further divided into insurable risk and
non-insurable risk. With the development of the insurance market, the
scope of insurable risk is becoming larger and larger. b. Financial risk Financial risk, also called venture risk, refers to the risk that has possibilities of both loss and profit. It has three possible results: getting loss, getting nothing or getting profits. Generally speaking, profits come together with risks. As the possibility of profit goes hand in hand with financial risk, the financial risk management is not simply to minimize it. In financial risk management, the risks assumed by a company should be decided by the preference of those people who take the risk and a perfect loss management system should be set up at the same time. In doing so, the company will become more competitive. Financial risk can be divided into operation risk and market risk. Operation risk means the risk of operation caused by the external environment of a company. Market risk means the risk caused by the variable elements directly related to a company’s operation. Actually it is not an easy job to distinguish the operation risk from the market risk.
|
|||
| Tips of Risk Management | |||
|
Generally
speaking, the responsibilities of risk management personnel in a company
mainly include eight respects as follow:
|
|||
