Corporate Risk Management And Insurance

الملخص

This study aims to develop a strategy for choosing insurance as one of the important tools of risk management, where insurance belongs to special types of risk transfer, by means of insurance the negative consequences of the risks of an unfavorable situation in the future are transferred to an insurance company, which under the terms of the insurance policy covers the loss or damage, either in whole or in part. Therefore, insurance helps maintain the economic stability of the economic institutions, and protects the company from sudden and unexpected events that lead to financial losses for the institution. Increased costs, the need for credit, insolvency, and the like are the result of reducing risks. One of the types of insurance system is based on commercial principles of competition. The optimal strategies aim at the best application and balance between risk management and the ability to insure to manage the economic institution by choosing a combination of financial products available in the market such as financial derivatives, and insurance is one of these products that have since ancient times formed one of the effective tools in transferring financial risks to insurance companies.