Every human action can cause a risk. This risk depends on a variety of actions a person does. In terms of insurance, risk is the possible loss that a person could experience and the dangers posed by the possibility of something happening but not knowing when and what will happen. To deal with these risks we need preparation and proper protection. Hence the importance of insurance more visible when a person afflicted with calamity, even if the disaster did not want every person.

Not counting how many losses to be borne by society due to the disaster happened. So be thankful, if you have take out, do not need to be confused to find money to repair damaged houses or cars that had stalled due to flooding. Simply add a claim to the insurance company, then you will get compensation.

Risk Forms

1. Pure – This forms if there will cause the loss or does not cause loss ( breakeven ). Example: Risk of Fire, Casualty Risk.

2. Speculative – That may cause the loss occurred, does not cause loss or profit ( gain ). Example: Production, Monetary ( Foreign Exchange ).

3. Fundamental – Risks in case of impact can be very large losses or catastrophic nature. Example: War, Earthquake, Air Pollution.

4. Special (particular): Risk that if it does, the impact of losses is local, not comprehensive or not catastrophic. Example: Fire, Accident, Theft.

Risk Management

1. Risk Identification

This stage is to identify the risks faced by any human being either personally or risks faced in the process of business activities.

2. Risk Evaluation

1. The frequency is rare, the impact of low loss / small 
These risks need not be insured because it rarely happens, and if there is a low impact / small.

2. The frequency is rare, the impact of high losses / major. 
This risk needs to be insured and insurance companies are still willing to close / cover this risk

3. Frequency is used, the impact of low loss / small. 
This risk classification is identical to 1, which needs to be done is prevention so that does not happen often.

4. Frequency is used, the impact of high loss / large. 
In this risk is the opposite mindset between the client and insurance companies. Customers want this risk can be insured, but insurance companies may not receive because the frequency it happened often, and the impact of losses is also high.

Risk Control

1. Financial Control

Buying protection insurance by paying an insurance premium ( Customer Transfer The Risk Of Insurance Companies ). Bear their own costs such risks, the impact of weakness if the loss is high enough to threaten the business activities.

2. Physical Control

Eliminate risk. But this is not possible because of the risk will always exist and may occur, so that needs to be done is that the risk minimization, minimize the risk by providing incident prevention equipment and complete response equipment to deal with risk.