Financial risk in insurance their interests while achieving their goals. Through risk management, stakeholders can ensure that the organization achieves desired outcomes, reduces the impact of threats to acceptable levels, and increases opportunities to seize opportunities. Uncertainty can be defined as the inability to know what will happen in the future. Greater uncertainty increases risk and, conversely, uncertainty and risk are directly proportional to the importance of the other party. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay Advantage comes from the existence of risk. If there is an opportunity for loss (risk), there is also an opportunity for profit. Facts about the risks faced by the organization. The types of risks can be divided into operational risks and professional risks, business risks, political risks, human resources risks, technical risks, health risks, related party risks and competitive risks. The organization's mitigation strategies and measures include administrative, technical, contractual, and security procedures across business operations. At the moment, it is not appropriate to manage risks only at the level of a functional elevator. The current market environment requires a more integrated approach to risk management. All organizations around the world are taking a global approach to all the risks they face. Integrated risk management is a continuous process in which potential risks are assessed at all levels of the organization and all results are collected company-wide to improve decision making. Integrated risk management must be part of the organization's strategy and have a significant impact on risk management within the organization. This approach helps organizations maximize their benefits at the next level. The integrated approach focuses only on identifying and assessing risks and mitigating impacts to minimize acceptable risks. Take risks at an acceptable level and help organizations drive innovation within hermitages. Jordan's insurance market currently consists of 24 insurance companies. One is registered as a life insurance company, 9 are a non-profit company, and 14 are a global company. In 2016, total premiums written by Jordan were JD582.9 million and the total paid was JD438.9 million. In the same year, the sector had previously achieved a net profit of 35.1%, a return on assets of 3.8% and a return on equity of 10.2%. The Jordanian insurance sector is facing numerous challenges that require our attention. It is therefore essential to find solutions to these challenges. These challenges include the numerous insurance companies related to the size of the market, low per capita income, and poor credit quality of insurance companies. Furthermore, the insurance sector has been affected by the global financial crisis and local political issues. Despite these challenges, the relative importance of the Jordanian insurance sector during the period 2000-2016 increased, with total premiums increasing at an annualized rate of 12% and premiums during this period. Insurance increased 187% from21 JD to 59 JD. Furthermore, the ratio of total premiums to GDP (insurance penetration) increased from 2000 (1.7%) to 2016 (2.1%). One of the main objectives of insurance companies is to build customer loyalty. Organizations can save a lot of money by satisfying customers because it is five times cheaper than attracting new ones. If insurance companies do not consider good strategies to maintain market share, they will face risks. Therefore, effective risk management is essential for all businesses. The importance of the insurance sector depends on several factors. The insurance industry provides safety and security by collecting large premiums that can be invested in the local economy, preventing sudden losses, generating financial resources and generating funds to stimulate growth. The insurance industry encourages investments to reduce losses and increase trade and commerce. Insurance plays an important role in sustainable economic development. Finally, risk management is a system that works proactively by examining the various risks that may arise and defining procedures and measures that increase the organization's ability to avoid or mitigate the impact of risk processes. At an acceptable level, risk management is the process by which an organization can define risks, evaluate and develop strategies to manage or maintain those risks. This process begins by asking three simple questions: What can go wrong or right? What can be done to avoid making mistakes and enjoy the good? What would happen if an error occurs? Problem Statement Insurance companies are the main business of risk management. Companies manage the risks of both their customers and their own risks. This requires integrating risk management into companies' systems, processes and culture. Various stakeholders put pressure on their organizations to effectively manage their risks and transparently report their performance in such risk management initiatives. Banks argue that some risks can and should be retained as part of core business operations and actively managed to create value for stakeholders, while others should be transferred elsewhere, as long as it is cost-effective to do so. According to Stulz, some risks present opportunities through which the company can gain a comparative advantage and thus enable it to improve financial performance. Overall, a review of the risk management literature seems to suggest that better risk management practices result in improved firm financial performance. By connecting risk management and performance, insurance companies can more effectively and efficiently understand the value of implementing a risk management framework. Higher risk maturity is associated with better stock performance for most companies. Ernst & Young also reinforces this view by suggesting that companies with more mature risk management practices financially outperform their peers and tend to generate the greatest revenue growth. Numerous studies have been conducted on risk management by companies in Jordan, but little has been studied on insurance companies. There are some risk management practices that have greater significance on financial performance than others, i.e. the existence of a risk management policy and the integration of risk management in setting organizational objectives were considered as the main practices of risk management that had an effectdirectly on financial performance. There is no doubt that we can predict the types of risks that insurance companies may face across all sizes and businesses, but what we can learn is how to take advantage of these disruptions to ensure the integrity and efficiency of insurance companies existing or future. Risks faced by insurance companies have many types which are listed with a brief description: Insurance Risk: It is the underwriting risk associated with the uncertainty of business written in the future. Market risk: is the risk associated with movements in interest rates, forcing changes in rates or asset prices to determine an unfavorable movement in asset values. Credit risk: if another party fails to perform them on time, i.e. if the party fails to pay the credit. Therefore, the financial effect of non-payment of reinsurance and non-payment of premium debtors should be taken into account. Liquidity risk: it is the risk that a company does not have sufficient financial resources to meet its obligations when they fall due or that they can only guarantee the resources at an excessive cost. Operational risk: it is the risk of direct or indirect losses arising from processes , inadequate or failed internal people and systems, or by external events. These types were adopted from the literature review. Research Question The purpose of this exploratory study is to determine the current state of risk management in the Jordanian insurance industry and improve risk management practices. This can be achieved by answering the following questions: What are the current risk management practices of Jordanian insurance companies? How can Jordanian insurance companies improve and adequately institutionalize risk management processes? Importance of the research The importance of the study lies in the following main considerations: Providing practical evidence of the importance of compatibility between competitive priorities and risks of insurance companies with its reflection in institutional performance. Identify the risks of insurance companies that affect the performance of companies in Jordan and study the impact of each of them. Most of the studies were conducted on companies operating in Europe and the United States. So the importance of the study lies in what it will add to the concepts and frameworks of science to fill a gap. Research Objectives The following objectives will be achieved: Research on the current risk management practices of Palestinian insurance companies. Identify the main risks of Palestinian insurance companies. Recognize risk management and its importance. Limitations of the research. There are many field studies, but few of them are implemented in Jordan. Some of the risks studied are out of control and cannot be predicted easily ; which constitutes a huge limitation and gap in this study. Time limitations. Risks and Their Types Risk is defined as an adverse or negative event that has the potential to negatively affect your organization. According to Mazouni, decision making is itself a risk and can be measured by examining different factors such as risk, event and risk. He noted that the main factors are the severity and frequency of accidents. Fundamental and economic risks affect many people, such as earthquakes and unemployment. However, special risks represent risks that affect a specific group of people, such as theft or vandalism. Not all basic risks are insured by the insurer because if the insurer insures for the basic risk, it will suffer significant losses. Some of them (such as storms and,.

Topic > Financial risk in insurance their interests while achieving their goals. Through risk management, stakeholders can ensure that the organization achieves desired outcomes, reduces the impact of threats to acceptable levels, and increases opportunities to seize opportunities. Uncertainty can be defined as the inability to know what will happen in the future. Greater uncertainty increases risk and, conversely, uncertainty and risk are directly proportional to the importance of the other party. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay Advantage comes from the existence of risk. If there is an opportunity for loss (risk), there is also an opportunity for profit. Facts about the risks faced by the organization. The types of risks can be divided into operational risks and professional risks, business risks, political risks, human resources risks, technical risks, health risks, related party risks and competitive risks. The organization's mitigation strategies and measures include administrative, technical, contractual, and security procedures across business operations. At the moment, it is not appropriate to manage risks only at the level of a functional elevator. The current market environment requires a more integrated approach to risk management. All organizations around the world are taking a global approach to all the risks they face. Integrated risk management is a continuous process in which potential risks are assessed at all levels of the organization and all results are collected company-wide to improve decision making. Integrated risk management must be part of the organization's strategy and have a significant impact on risk management within the organization. This approach helps organizations maximize their benefits at the next level. The integrated approach focuses only on identifying and assessing risks and mitigating impacts to minimize acceptable risks. Take risks at an acceptable level and help organizations drive innovation within hermitages. Jordan's insurance market currently consists of 24 insurance companies. One is registered as a life insurance company, 9 are a non-profit company, and 14 are a global company. In 2016, total premiums written by Jordan were JD582.9 million and the total paid was JD438.9 million. In the same year, the sector had previously achieved a net profit of 35.1%, a return on assets of 3.8% and a return on equity of 10.2%. The Jordanian insurance sector is facing numerous challenges that require our attention. It is therefore essential to find solutions to these challenges. These challenges include the numerous insurance companies related to the size of the market, low per capita income, and poor credit quality of insurance companies. Furthermore, the insurance sector has been affected by the global financial crisis and local political issues. Despite these challenges, the relative importance of the Jordanian insurance sector during the period 2000-2016 increased, with total premiums increasing at an annualized rate of 12% and premiums during this period. Insurance increased 187% from21 JD to 59 JD. Furthermore, the ratio of total premiums to GDP (insurance penetration) increased from 2000 (1.7%) to 2016 (2.1%). One of the main objectives of insurance companies is to build customer loyalty. Organizations can save a lot of money by satisfying customers because it is five times cheaper than attracting new ones. If insurance companies do not consider good strategies to maintain market share, they will face risks. Therefore, effective risk management is essential for all businesses. The importance of the insurance sector depends on several factors. The insurance industry provides safety and security by collecting large premiums that can be invested in the local economy, preventing sudden losses, generating financial resources and generating funds to stimulate growth. The insurance industry encourages investments to reduce losses and increase trade and commerce. Insurance plays an important role in sustainable economic development. Finally, risk management is a system that works proactively by examining the various risks that may arise and defining procedures and measures that increase the organization's ability to avoid or mitigate the impact of risk processes. At an acceptable level, risk management is the process by which an organization can define risks, evaluate and develop strategies to manage or maintain those risks. This process begins by asking three simple questions: What can go wrong or right? What can be done to avoid making mistakes and enjoy the good? What would happen if an error occurs? Problem Statement Insurance companies are the main business of risk management. Companies manage the risks of both their customers and their own risks. This requires integrating risk management into companies' systems, processes and culture. Various stakeholders put pressure on their organizations to effectively manage their risks and transparently report their performance in such risk management initiatives. Banks argue that some risks can and should be retained as part of core business operations and actively managed to create value for stakeholders, while others should be transferred elsewhere, as long as it is cost-effective to do so. According to Stulz, some risks present opportunities through which the company can gain a comparative advantage and thus enable it to improve financial performance. Overall, a review of the risk management literature seems to suggest that better risk management practices result in improved firm financial performance. By connecting risk management and performance, insurance companies can more effectively and efficiently understand the value of implementing a risk management framework. Higher risk maturity is associated with better stock performance for most companies. Ernst & Young also reinforces this view by suggesting that companies with more mature risk management practices financially outperform their peers and tend to generate the greatest revenue growth. Numerous studies have been conducted on risk management by companies in Jordan, but little has been studied on insurance companies. There are some risk management practices that have greater significance on financial performance than others, i.e. the existence of a risk management policy and the integration of risk management in setting organizational objectives were considered as the main practices of risk management that had an effectdirectly on financial performance. There is no doubt that we can predict the types of risks that insurance companies may face across all sizes and businesses, but what we can learn is how to take advantage of these disruptions to ensure the integrity and efficiency of insurance companies existing or future. Risks faced by insurance companies have many types which are listed with a brief description: Insurance Risk: It is the underwriting risk associated with the uncertainty of business written in the future. Market risk: is the risk associated with movements in interest rates, forcing changes in rates or asset prices to determine an unfavorable movement in asset values. Credit risk: if another party fails to perform them on time, i.e. if the party fails to pay the credit. Therefore, the financial effect of non-payment of reinsurance and non-payment of premium debtors should be taken into account. Liquidity risk: it is the risk that a company does not have sufficient financial resources to meet its obligations when they fall due or that they can only guarantee the resources at an excessive cost. Operational risk: it is the risk of direct or indirect losses arising from processes , inadequate or failed internal people and systems, or by external events. These types were adopted from the literature review. Research Question The purpose of this exploratory study is to determine the current state of risk management in the Jordanian insurance industry and improve risk management practices. This can be achieved by answering the following questions: What are the current risk management practices of Jordanian insurance companies? How can Jordanian insurance companies improve and adequately institutionalize risk management processes? Importance of the research The importance of the study lies in the following main considerations: Providing practical evidence of the importance of compatibility between competitive priorities and risks of insurance companies with its reflection in institutional performance. Identify the risks of insurance companies that affect the performance of companies in Jordan and study the impact of each of them. Most of the studies were conducted on companies operating in Europe and the United States. So the importance of the study lies in what it will add to the concepts and frameworks of science to fill a gap. Research Objectives The following objectives will be achieved: Research on the current risk management practices of Palestinian insurance companies. Identify the main risks of Palestinian insurance companies. Recognize risk management and its importance. Limitations of the research. There are many field studies, but few of them are implemented in Jordan. Some of the risks studied are out of control and cannot be predicted easily ; which constitutes a huge limitation and gap in this study. Time limitations. Risks and Their Types Risk is defined as an adverse or negative event that has the potential to negatively affect your organization. According to Mazouni, decision making is itself a risk and can be measured by examining different factors such as risk, event and risk. He noted that the main factors are the severity and frequency of accidents. Fundamental and economic risks affect many people, such as earthquakes and unemployment. However, special risks represent risks that affect a specific group of people, such as theft or vandalism. Not all basic risks are insured by the insurer because if the insurer insures for the basic risk, it will suffer significant losses. Some of them (such as storms and,.