Business Performance

Question : Discuss about the Risk Mangement and Business Performance ? Answer : Introduction: In the last decade, the Oman insurance market has passed through an important phase of its consolidation and development. Currently, it has arrived at an effective level of development and as a result, it has been able to provide effective qualitative services for the citizens of Oman. The insurance industry of Oman has experienced increased performance each year, which is validated by the rising number of contracts and premium volumes. The current research aims to evaluate the impact of risk management on the business performance of Takaful Oman, which is a popular organisation in the Oman insurance market. Takaful Oman is one of the leading insurance firms in Oman for enhancing value to the stakeholders under the compliant framework of Sharia. The main objective of the organisation includes the promotion of Takaful awareness by offering innovative compliant products and services of Sharia to provide extra value for tailoring to the particular needs of the customers with the help of dedicated professional team (Takafuloman.om 2017). The organisation is involved in dealing with many services like family, health, creditor, motor, property and fidelity insurance packages. In addition, Hotel Takaful is another service provided on the part of an organisation for reputable hotels and resorts to carry on with their operations. By conducting the same, the policy insures that no insurable exposure remains uninsured with no over insurance of risk elements. This policy is designed to meet the needs of the hotel along with covering each aspect of the hotel. Money Tafakul is another insurance policy, which aims to offer indemnity following loss of money or theft for the citizens of Oman. Finally, another service that the organisation provides is Travel Takaful Plan, which intends to provide a family holiday package having personalised coverage against medical expenditures, loss of documents or money and flight delays (Sadgrove 2016). Rationale for the study: Risk management is one of the significant research areas over the past few decades (Bromiley et al. 2015). It has been observed that risk management could determine the success or failure of the insurance organisations, as during the global financial crisis, the ineffective practices of risk management has been a major cause. Despite the rapid growth of the Oman insurance market, this sector has been confronted with various challenges for accomplishing greater qualitative services, rising security offers and modern services (Melnyk et al. 2014). This is particular prevalent in selecting techniques of risk management for accomplishing the best business performance by applying the European standards in this sector. Thus, the main objective of this research is to conduct a brief evaluation of risk management and business performance of Tafakul Oman. Hence, this research would shed light on justifying the practice of risk management of the organisation and developing an effective process of risk management for the same. Objectives: The objectives of the research include the following: To identify the current process of risk management practices in Takaful Oman To identify the impact of risk management practices on the business performance of Takaful Oman To recommend potential methods to improve the risk management practices of the organisation in the insurance market of Oman References: Bromiley, P., McShane, M., Nair, A. and Rustambekov, E., 2015. Enterprise risk management: Review, critique, and research directions.Long range planning,48(4), pp.265-276. Melnyk, S.A., Bititci, U., Platts, K., Tobias, J. and Andersen, B., 2014. Is performance measurement and management fit for the future?.Management Accounting Research,25(2), pp.173-186. Sadgrove, K., 2016.The complete guide to business risk management. Routledge. Takafuloman.om. (2017).Takaful Oman Islamic Insurance Provider Companies in Oman. [online] Available at: https://www.takafuloman.om/index.html [Accessed 7 Mar. 2017].