
266 Operational Risk Control
and control procedures are two of the challenges lying ahead.’ This is true all over
business and industry. Section 12.6 takes the shipping business as a case study.
12.6 Analytical studies are the way of being in charge of risks
Just as banks must do appropriate research on credit rating prior to giving major
loans, the best managed insurers must study what they can expect in terms of risk and
return prior to underwriting a policy. It serves little to become an aggressive insurer
without lots of homework to back up one’s moves regarding:
䊏 Risk being assumed, and
䊏 The actuarial view of fair premium.
A good deal of the research ...