Research On Enterprise Risk Management Of Star Assurance Company Limited

The quality of risk management is a crucial issue not only for the survival and profitability of the insurance industry,but also for the growth and development of the whole economy.As major risks underwriters,insurance companies need to adopt good practices or quality measures in the management of all types of risk.The principles of effective management of enterprise risk concern such issues as: premium risk,investment risk,recovery risk,claim risk,reinsurance,political risk,government interference and technological risk.Star Assurance Company Limited is a privately owned Insurance Company incorporated in August 1984 and licensed to carry out corporate and retail insurance businesses in Ghana.In recent times,Star Assurance Company Limited have had to battle with several risks,including untimely payment of premium by clients,false pretence of insurance claim,limited understanding of how insurance companies operate,especially among the illiterate population leading to low patronage of insurance products coupled with other externalities including changes in currency rates and inflation.These challenges greatly affect the smooth operations of Star Assurance Company Limited and have increasingly affected progress of insurance industry in general in Ghana.In the view of this,through the use of literature review,logic analysis and other methods,combined with the enterprise risk management theories,the prime contents of this thesis are analysis of current situation of risk management,risk identification and risk evaluation of star assurance company and the suggestion to optimize enterprise risk management.The major advantage of the company is that it is well respected among the industry players and the positive perception of customers towards the company.In order to reduce the number of risks and to sustain its respected position in the industry,the company should try as much as possible to integrate risk management efforts and further retool the risk committee to have oversight responsibilities over other departments like IT,Sales department,claims department etc.in order to have a first-hand information on the company's risk position.It is also important that the company realign its organizational culture and structure to incorporate the measures that ensures reduction of risk.This research provides guidance to improve the current risk management of the company.