Abstract

Risk Management Techniques and Financial Performance of Insurance Companies

Kokobe SA and Gemechu D

Risk if not well managed could lead to collapse for most organizations especially those whose core business deals with day to day handling of risk. This involves identifying and analyzing risks, developing and implementing risk handling techniques and monitoring the progress of these in order to avoid and/or reduce the impact of risk on the financial performance of the firm. The study used both primary and secondary data. Primary data was collected through questionnaires and Secondary data was collected from yearend financial report of the selected company. The result from regression analysis shows that risk management practice and financial performance are not correlated. This opens a door for other problem on the application of the management techniques.