Generally, the goal of risk management is value maximization for a for-profit firm. In other words, risk management aspires to maximize value by reducing the price tag on risk. Total costs of real risk include costs of control and costs of funding. This essay targets risk financing. You can find two broad methods of risk funding: risk retention and risk copy. Risk transfer includes insurance and other contractual risk exchanges. At the start of the assay, I will introduce the concept of retention, insurance, and contractual risk transfers, and their benefits and drawbacks. Then I will discuss how a firm should make a decision between risk retention and risk transfer, if a captive insurance provider is not to be employed. Finally, I am going to discuss how a firm, getting a captive insurer, should financing its clean risk loss.
All big brands throughout the world are now shifting towards the trend of globalization. Something is forget about confined to geographical boundaries. Globalisation demands global marketing strategies being carried out around the world to resonate the brand's personality and its own image to focus on customers. A synonymous marketing strategy is cost-effective which is the strategy applied by many big companies throughout the world. However, experts also say that is not always a smart strategy because consumer behavior across the world ranges from culture to culture and from region to nation. For instance, an American consumer will react and respond in different ways when compared with a Nepalese consumer. Thus, while employing global marketing strategies, a wiser move would be to tweak it, customise it, and connect it with the local consumer behaviour.