Risk Identification

Published:

Definition - What does Risk Identification mean?

Risk identification is the means by which a company's management attempts to pinpoint risks in their business operations. This allows them to take steps to prevent these risks or create relevant solutions in case they do happen, such as purchasing adequate insurance coverage.

Insuranceopedia explains Risk Identification

An insurance company might work directly with a business organization to help them with the risk identification process. The business may allow the insurer to assess their business operations or inspect their workplace in order to locate any actual or potential risks. The insurer will then suggest improvements aimed at risk reduction, such as better safety standards.

The identified risks are analyzed according to their likelihood of occurring, their predicted frequency, and the estimated cost of a loss.


How Well Do You Know Your Life Insurance?

The more you know about life insurance, the better prepared you are to find the best coverage for you.

Whether you're just starting to look into life insurance coverage or you've carried a policy for years, there's always something to learn.

Share this:

Connect with us

Email Newsletter

Join thousands receiving the latest content and insights on the insurance industry.