Insurance Management

Insurance Management ____________________________________________________________ __________________ Introduction Insurance is a fortune guidance tool. Although FHLBanks also use some forms of indemnification to mitigate ascribe risk, insurance as described here is primarily utilize to mitigate operational risk. The potential for liability to an FHLBank arising from its operations and its arranging of controls should be reflected in its annual risk assessment (Annual encounter Assessment) required to be conducted pursuant to Section 917.3 of the Finance senesce regulations. The value of insurance lies in the protection it affords an FHLBank or persons associated with it from losses arising from failures in the FHLBanks system of risk controls or from new(prenominal) causes. The specific insurance needs of the FHLBank essential be assessed on a caseby-case basis; only by reviewing each policy in force washbasin the actual degree of reportage and protection be determined. In addition, insurance management should be reflected in the FHLBanks business continuity operations as the potential for losses and errors may increase due to a disabling event.

The objective of an FHLBanks insurance management help should be to minimize losses and costs arising from risks undertaken by the institution, much(prenominal) as direct costs of loss prevention measures, insurance premiums, losses sustained, and related administrative expenses. The FHLBanks board of directors must determine the maximum loss the institution is willing to seize and should, at minimum, perform and document an annual review of FHLBanks risk and insurance management program for its adequacy. However, the maintenance by an FHLBank of adequate insurance should not, by itself, be viewed as a satisfactory substitute for the other elements of a sound risk management program. Examples of available insurance coverages are described below. specialized Types of Insurance Coverage The insurance industry offers various types of coverages that can be purchased... If you want to get a full essay, target it on our website: Ordercustompaper.com

If you want to get a full essay, wisit our page: write my paper