Risk Management & Insurance are universal and lies at the heart of all economic activities of individuals and businesses. Though effective use of risk management & insurance techniques, we attempt to use our limited economic resources – capital, land and labor – efficiently to further our economic well being. Scientific, technological and managerial developments have afforded us the ability of dealing with many of those risks. It is true that, frequency of loss has been decreasing for many technologically sophisticated processes and activities, but the adverse consequences of losses that do occur have increased. For example, the combined effect of a growth in population, a rise in property density and value, and expanded interactions among people across national boundaries have resulted in higher frequency and severity of catastrophes losses.

The insurance of risk management offers numerous, albeit less apparent, benefits to individuals. It can reduce production costs, which in turn can make goods and services available to consumers at a lower cost. A reduction in the number and severity of injuries should reduce the drain on expenses to family, the need for welfare programs for injured persons, and taxes needed for the support.

The insurance of risk management most often refers to as unintended outcomes. For instant, issue such as typhoon causing property damage and human casualties, unintended fire causing losses of house, flood causing vehicle damages, hence risk management and insurance are interrelated and definitely is a needed for an organization and personnel to protect the right as well as minimize greater risk exposure.