The field of risk management emerged in the mid-1970s, evolving from the older field of insurance management. The term risk management was adopted because the new field has a much wider focus than simply insurance management. Risk management includes activities and responsibilities outside of the general insurance domain, although insurance is an important part of it and insurance agents often serve as risk managers. Insurance management focused on protecting municipalities from natural disasters and basic kinds of exposures, such as fire, theft whereas risk management focuses on these kinds of risks as well as other kinds of costly losses, including those stemming from product liability, employment practices, environmental degradation, accounting compliance, offshore outsourcing, currency fluctuations, and electronic commerce.
Risk managers need to be aware of the types of risks they face. Common types of risks include fire, flood, and tornadoes; although more complicated types such as liability and environmental degradation also exist.
Any given risk can lead to a variety of losses in different areas. For example, if a fire occurs, a municipality could lose its physical property such as buildings, equipment, and materials. In this situation, a municipality also could lose revenues, in that it could no longer produce goods or provide services. Furthermore, a municipality could lose human resources in such a disaster. Even if employees are not killed or injured, a municipality would still suffer losses because employers must cover benefits employees draw when they miss work.
Exercises
Answer the following questions.
1) What does include the process of synthesis and response to change?
2) Project planning addresses the specific timeframe and budget
for the project‚ doesn’t it?
3) What should be held to review the degree to which the performance measures were met?
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4) Is risk management a systematic process of identifying and assessing municipality risks or not?
5) When did the field of risk management emerge?
2. Find the English equivalent s of the following Russian
Phrases in the text.
1) Проектная интеграция;
2) определённые сроки;
3) этап жизненного цикла;
4) контроль факторов риска;
5) управление страхованием.
Fill in the gaps with the words from the box.
Each word can be used only once.
protecting measures stages disasters activities municipality scope buildings planning rapidly |
1) __________ is considered a most important process because without excellent planning the ensuing __________ are unlikely to succeed.
2) A series of meetings should be held to review the degree to which the performance __________ were met, from both the defined __________ and the satisfaction of the customer.
3) Management of the integration of project __________ is especially important in a __________ changing environment.
4) Insurance management focused on __________ municipalities from natural __________ and basic kinds of exposures.
5) If a fire occurs, a __________ could lose its physical property such as __________, equipment, and materials.
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Circle the Odd Word Out.
1) Environment‚ idea‚ justification;
2) a‚ are‚ is;
3) can‚ change‚ control;
4) manage‚ may‚ must;
5) generically, liability‚ possibility.
Translate the sentences into Russian
using modal verbs.
1) You know‚ management process should require much attention.
2) This point of the comprehensive plan must be done right now!
3) Risk management may be a very significant item in our business.
4) Managers considered the design could be much better.
5) Those losses can’t be less than they were last year.
Section 6
MONITORING AND SECURITY OF
URBAN ENVIRONMENT
Text
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