RISK MANAGEMENT TECHNIQUES AND FINANCIAL PERFORMANCE OF INSURANCE COMPANIES

Abstract

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.