Summary |
This paper is aimed at providing clarity on conceptual issues encompassing micro-insurance. Since insurance is just a part of overall risk management function, we start with a relatively novel concept of Community Risk Management (CRM). While Risk Management has gained wide recognition in the corporate world, its application to the development sector has not yet been sufficiently documented. The term ‘risk management’ has been widely referred to in various papers and discussion but the real underlying concept and its practical application to problems like poverty has been conspicuously missing. This paper is an effort to put precepts of risk management in a practical perspective in the context of community development so as to accord a fresh look at problems of the poor that have been hitherto looked into from a purely social, economic or political standpoint. Understanding the very nature of risk and the techniques of handling risks not only has applications in business and community development but are also equally relevant to areas like investing, personal finance, strategic management, public administration, governance and international affairs. CRM is nothing but a methodical way of understanding, anlysing, controlling and financial threats surrounding an individual, community and society.
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