Agency 21: Risk Management
The twenty-first agency in the community is the Underwriting and Risk Management Agency. The agency provides underwriting services to community agencies that need them to issue loans or insurance services to other agencies, businesses, and participants.
The agency empowers community agencies and businesses with the capacity to manage business risks. The agency is part of the Business Development Bureau, which also includes Agency 19 (Business Planning) and Agency 20 (Marketing).
The Capital Bank Agency (agency 8) receives investment in the form of partnership interest from limited partners, which it in turn invests in community agencies, including the Underwriting & Risk Management Agency. The agency uses these funds for operations, including delivering chargeable services to participants. From its revenues, it pays the Capital Bank a return on its investment, which in turn enables the bank to pay limited partners superior returns on their investments.
Background:
Underwriting
Underwriting is the process of evaluating and assessing risks associated with a business or person applying for insurance coverage or credit. It can also refer to a risk assessment conducted before an investment decision. In the context of the community, the underwriting process results in recommendations that either the entity be granted coverage or credit, and at what cost, or their application be declined.
In loans underwriting, the process establishes the applicant’s willingness and capacity to pay. This includes considering details such as their credit history, income, current debt, assets, and the overall health of their business. The results of this process determine whether a loan will be availed, and the interest that will be charged above prevailing rates.
In insurance, the underwriter also assesses the risk involved, by determining the likelihood of the applicant filing a claim or of the risk being insured actually happening. The underwriter will therefore consider the applicant’s claims history, occupation, personal health, age, lifestyle, and any other relevant factors depending on the risk being insured. This then informs the underwriter and the insurance firm on whether to cover the risk, and the premium to charge.
In the absence of some of this information, which is often the case as a financial institution has no capacity to get other information besides what the applicant gives them, and what they receive from reference bureaus, underwriting has a subjective aspect, with the underwriter making informed guesses and inferences. For instance, the applicant may not disclose that they are chain smokers or use controlled substances, which is material information that in some instances, even a medical examination may not pick up on.
This changes when the underwriter – the Underwriting and Risk Management Agency in the community – has near-complete and accurate information. Using the information it has on a participant or an agency, the underwriter in this case can employ big data analytics to assess the risk associated with a loan or insurance cover with a high degree of accuracy.
Risk management
“Risk Management” is the process of identifying, evaluating, and mitigating the impact of risks. It is impossible to eliminate all risks since the very basis of entrepreneurship is risk-taking. Considering this, risk management is simply the art and science of balancing risk and reward. In the community, many risks are effectively mitigated due to the presence of large amounts that can be used to foretell future events, and advanced modeling tools to see what past data tells us about the future.
An important function of the Underwriting and Risk Management Agency is to facilitate businesses and agencies’ management of risk using data. Each business is provided with data by the agency that they use to identify, assess, mitigate, and monitor risks. The agency uses its automated system, contractors, and bureau presidencies to closely work with businesses and agencies so that they can have personalized risk management strategies.
Roles of the Underwriting and Risk Management Agency
- Provide underwriting services to various agencies
- Facilitate formulation of risk management strategies
- Monitoring risk management activities
- Risk appraisal
- Underwriting
- Training
Underwriting services
The three agencies in the Community Economic Bureau – Community Bank (agency 7), Capital Bank (agency 8), and Commercial Bank (agency 9) provide loans to other agencies in the community for acquisition or lease of assets. The agencies need underwriting services to inform them of the viability of financing the agencies as they apply, and what to charge them. Underwriting services also help in determining the term that a loan is going to be repaid in.
For instance, the Human Relations Agency (agency 1), which develops village buildings, among other assets, takes loans for this purpose from the Community Bank. The loans are applied through the village presidency for human relations. Once the application is received, the bank will request the Underwriting and Risk Management Agency to perform an underwriting process, which will consider the need for the facilities, use of existing facilities, and other obligations the village has, among others. The process will also consider the status of the agency as a whole, and use it to issue its recommendation.
The three agencies in the District Bureau: Health and Nutrition (agency 4), Life Planning (agency 5), and Recreation and Arts (agency 6) also offer insurance services to community agencies and participants. Health and Nutrition offers life and health insurance, while Life Planning offers business insurance to participants. Recreation and Arts insures community assets held by various agencies. The three agencies need insurance underwriting services to determine the premiums their clients will pay, and whether they should insure at all.
The Underwriting and Risk Management Agency provides these services. In the case of life insurance, the agency’s considerations include the applicant’s age, health, lifestyle, and profession. The agency does not rely on the applicant to supply this information: it has an automated system that has extensive information that details every relevant aspect about the applicant.
Underwriting services are paid for by the applicant of a loan or insurance coverage. The agency issuing a loan or insurance cover accommodates this cost as part of its application charges or staggered into interest or premium payments.
Risk Management Strategies
Every business and community agency needs to have a well-defined risk management strategy that enables it to identify and deal with risks and identify key dependencies in its plans – links between different operations that affect the probability of risk coming true.
As businesses do their business plans, there is a degree of uncertainty about them, since, even though they have highly detailed information and advanced analytical tools, they still cannot predict every aspect of the future. There are also other elements of business that the community cannot insulate itself from, such as the actions of regulators or the taxman, which add to uncertainty and present risk to a business’s health.
The Underwriting and Risk Management Agency works with businesses to identify, analyze, and mitigate risks through their risk management strategies. Every business is different and therefore needs a unique approach to its risks. While the agency’s automated system provides a template that generally outlines how to go about managing risks, businesses have a responsibility to adapt it to their circumstances.
The process requires processing enormous amounts of data (big data) to identify and analyze risks. The process also requires, in many instances, contractors who are risk management experts to assist businesses. The agency accredits these contractors to perform their work and relies on them to help participants draw up their risk strategies.
The risk management strategy formulation process is data-driven. It starts with a wholesome collection of all data pertaining to a business, including financial, operational, and even the business owner’s details. Information about the community, such as similar businesses, their operations, the incidence of various risks, and the economic outlook are also used in the process. This information is then synthesized by the agency’s automated system to show various risks, magnitude, and how they should be managed. The business owner is deeply involved in the process and the agency only provides the tools to do it, rather than formulating plans for the businesses.
Monitoring risk management strategies
The community is deeply interested in ensuring that businesses in the community succeed. This is because it invests extensive amounts in these businesses, including funds. It also appreciates that businesses’ success means that the community model will also thrive. It is interested in ensuring businesses abide by the risk management strategies they adopt with the Underwriting and Risk Management Agency’s facilitation.
Once risk management strategic plans have been formulated, they are filed with the agency. The agency constantly reviews business operations to ensure they comply with these plans. The agency also empowers businesses with the necessary tools to implement and monitor plans.
Every quarter, each business evaluates the efficacy of its risk management approaches, and whether anything needs to be adjusted in view of circumstances or evolving best practices in the field. The Underwriting and Risk Management Agency is at hand to work with businesses to carry out this review, and offer advice where necessary to improve management.
Training
The Underwriting Risk Management Agency intends to make every business owner fully aware of the risks they face, how to identify them, and how to control them to reduce their impact should they occur, or eliminate them altogether. To achieve this, the agency runs training sessions virtually, that every business owner is required to attend. The agency prepares these training modules with the help of contractors.
Before a business is eligible for certain services such as factoring, they need to have completed at least the basic elements of the train to give them some degree of familiarity with what they face, and therefore make them competent to balance their risk exposure.
The Underwriting and Risk Management Agency also trains agency presidents who in time may need to apply for loans or insurance on risk management, as well as the underwriting process. This training aims to equip them with skills that will enable them to manage risk, and therefore secure attractive interest and premium amounts from agencies that issue loans and insurance services.
How the Underwriting and Risk Management Agency operates
Background on presidencies
Every presidency in the community is a four-member entity whose members represent one of the four major demographic groups, referred to as divisions: married men (A), married women (B), single women (C), and single men (D). However, a president serves the whole community in their role, rather than only their demographic. Presidents’ diversity and commitment to serve all is provided for in the community bylaws and ensures that all access services without any discrimination.
These four major demographics are evenly split in a normal society. Each group accounts for between 23 and 27% of the population, with regular fluctuations as people’s status changes. The community appreciates that discrimination across all social categories happens based on marital status, other social categorizations notwithstanding; married men are likelier to dominate other demographics, especially single men and single women.
The community’s infrastructure promotes equal access to economic and social resources and opportunities. The composition of the community as a whole and those who serve it in the community public service is closely monitored to prevent numerical domination, which can lead to nepotism or unequal access.
Besides marital status, the recruitment to be a participant, and to serve in the public service carefully considers other social categorizations, to ensure racial, ethnic, religious, and sexual groups are well represented in the community as they are in the society in which a community operates. These considerations inform the constitution of the community public service. The diversity in community public service, which is provided by bylaws, is aimed at creating a community that is blind to all other considerations besides service to participants. The service is therefore designed to be free of discrimination.
Agency presidency, bureau board, and demographic presidencies
The Underwriting and Risk Management Agency is served by an agency presidency, whose principal task is to set the agency’s overall strategy and operating policies. It also sets up the automated system that performs the bulk of the agency’s work. The agency presidency adjusts the automated system, strategy, and policies from time to time as advised by the Business Development bureau presidencies, contractors, and its observations.
The agency presidency joins with those serving the Business Planning (agency 19) and Marketing (agency 20) to form a 12-member Business Development Board. The board is a check and balance tool for individual presidents and agencies, especially on decisions that have far-reaching implications for the community.
Within the bureau board, three presidents from the same demographic form a demographic presidency. There are four such presidencies in the bureau. The demographic presidency works on matters of common interest to a demographic, that cut across the three agencies. The demographic presidency also plays an important role in the mentorship and training of new presidents.
| Demographic presidency A | Demographic presidency B | Demographic presidency C | Demographic presidency D | |
|---|---|---|---|---|
| Agency presidency, Business Planning (19) | 19A | 19B | 19C | 19D |
| Agency presidency, Marketing (20) | 20A | 20B | 20C | 20D |
| Agency presidency, Underwriting, and Risk Management (21) | 21A | 21B | 21C | 21D |
Bureau presidencies
The three agencies in the Business Development Bureau are served by 48 bureau presidencies of four presidents each (married men (A), married women (B), single women (C), and single men (D)). Each district is served by 2 bureau presidencies.
The higher number of bureau presidencies compared to other bureaus in the Process and Property Department reflects the nature of duties that these agencies fulfil. They need extensive interaction between the three agencies and participants. For instance, presidencies in agencies applying for loans or insurance will need extensive interaction with bureau presidencies as their underwriting reports are completed by the agency. Also, risk management is primarily done by business owners with unique challenges and circumstances, who need help coming up with good risk management strategies.
Bureau presidencies carry out the operations of the three agencies in their bureau within their district. They implement strategy and interact extensively with contractors, businesses, and the automated system. Their recommendations to the agency presidency inform the agency presidency’s adjustments to strategy and the automated system.
For example, the community may observe higher-than-ordinary levels of default on account receivables, leading some businesses to make huge losses or even become bankrupt. To protect them, bureau presidencies can come up with recommendations for controls, such as a more thorough inspection of a client’s ability to pay, and a cap on how much can be taken on credit. The agency presidency will then take this recommendation and include it as part of the strategy while updating the automated system accordingly. The agency will also facilitate training for contractors and businesses to update them on the changes.
Limited partners and branch presidencies
Limited partners and dependents
A limited partner is the basic unit in the community. A limited person, usually above 18 years old, but sometimes as young as 16, has been admitted into the community and has invested $20,000 as partnership interest, for which they earn a return. This is regarded as one unit of partnership interest.
Over time, a limited partner can add more units of partnership interest, as their business prospers. The more partnership interest units a limited partner has, the more the return they receive from the Capital Bank.
A dependent is a minor, or a person living with a disability, under the care of a limited partner. In some instances, a dependent may be a fit adult, who for various reasons is supported by community agencies, and assigned by contract to a limited partner. Limited partners are responsible for any legal agreements that their dependents enter into, either with community agencies or other participants, and therefore have the right of attorney.
Together, limited partners and dependents are referred to as participants. Participants who are dependents, because they are still minors, can start a business when they reach 12 years of age. This allows them to save up and invest $20,000 into the community by their 18th birthday, and possibly as early as 16.
Limited partners and their dependents reside in apartments (village buildings). Each apartment has 4 floors, with each floor containing 16 apartments. Each floor has floor has 7 – 12 limited partners, with each limited partner having 1 – 3 dependents. Each floor therefore has around 25 residents. With four floors, each building has approximately 100 residents. An apartment building also forms a branch.
Limited partners and unit
A limited partner is the basic unit in the community. A limited partner, usually above 18 years old, but sometimes as young as 16, has been admitted into the community and has invested $20,000 as partnership interest, for which they earn a return from the Capital Bank Agency, which invests other community agencies. This is regarded as one unit of partnership interest. Over time, a limited partner can add more units of partnership interest, as their business prospers. The more partnership interest units a limited partner has, the more the return they receive from the agency.
A dependent is a minor, or a person living with a disability, under the care of a limited partner, and who has, in any of these cases, given their power of attorney to the limited partner. In some instances, a dependent may be a fit adult, who for various reasons is supported by community agencies, and assigned by contract to a limited partner. Limited partners are responsible for any legal agreements that their dependents enter into, either with community agencies or other participants. Together, limited partners and dependents are referred to as participants.
Participants who are dependents, because they are still minors, can start a business when they reach 12 years of age. This allows them to save up and invest $20,000 into the community by their 18th birthday, and possibly as early as 16. Limited partners and their dependents reside in apartment buildings (village buildings). Each apartment building has five floors, with four containing apartments. An apartment building also forms a branch.
Captains and branch presidencies
Of the approximately 100 residents in a branch, around 40 of them are limited partners.They are divided into 4 units, each of which has 10 limited partners and their dependents. The limited partner membership in a unit is diverse, containing different social groups that are reflective of the society within which a community operates.
Additionally, a unit contains members of the four main demographics: married males (A), married females (B), single females (C), and single males (D).
The 4 demographics in the branch form 4 groups, as follows:
- Group 1: married males and married females
- Group 2: single females and single males
- Group 3: married males and single males
- Group 4: married females and single females
Within each group, there are different subsets, known as classes, based primarily on age. There is a class for Nursery (0-2), toddlers (3 – 5), young children (6-9), pre-teens (10-12), teens (13-18), young adults (19-31), adults (32-72), and empty nesters (73+).
| Meeting week | Class 1 | Class 2 | Class 3 | Class 4 | Class 5 | Class 6 | Class 7 | Class 8 |
| Week 1 and 3 | All married adults | All single adults | Teen boys and girls | Pre -teens | Young children | Toddlers | Nursery | |
| Week 2 and 4 | All men | All women | Teen boys | Teen girls |
Further details on the composition of units, groups, classes, and branches, and their meeting schedules, is detailed here.
Recruitment and diversity
Captains are responsible for recruiting limited partners into the community through their council and by extension, branch. A captain does not recruit limited partners only from their demographic. Instead, they work to ensure that their recruits are diverse, considering social categorizations, gender, and social status, in addition to demographic groups.
Captains work in concert with their fellow captains in the branch presidency, and other presidencies in a village and district to ensure that the district is as diverse as possible. They are guided by present data on how diverse their district, village, and branch are, and what needs to be focused on to improve. They are also guided by community bylaws, which expressly require diversity as shown by demographic data about a population from which the community intends to recruit limited partners.
The captain serves as a service extension of the Human Relations Agency, though they also act as an interface between participants and other community agencies. For agencies that do not have bureau presidencies, such agencies in the Economic and Public Administration Bureaus, captains come in handy in helping participants navigate these agencies’ automated system and other relevant tools used by the agency to deliver services.
The automated system is designed to help participants with all the help they need in matters related to various agencies, including the Human Relations Agency. However, should they run into problems, captains assist them in navigating the system, or direct them to relevant contractors who help them at a fee.
Automated system
The Underwriting and Risk Management Agency has an automated system through which it performs most of its work, including interaction with participants. Underwriting and risk management are data-driven functions, with the agency relying on the capabilities of the system – artificial intelligence (AI) and big data analytics – to perform most of its functions.
The automated system is able to aggregate relevant information from various agencies touching on an applicant to produce accurate underwriting reports. It uses these same capabilities when enabling businesses to strategize on how to deal with risks. This includes adapting reports to unique circumstances and providing general templates to guide businesses’ risk management processes.
Contractors
While the underwriting process is highly automated, with the system automatically processing the information as needed, participants’ businesses frequently contract risk management consultants to help them in the different stages of the risk management process. The contractors specialize in particular lines of risk management and help the agency in instances where the participants are unable to receive some services from its automated system, such as having a strategic plan that is more responsive to a unique business situation.
The Underwriting and Risk Management Agency ensures that the contractors well well-facilitated to provide high-quality services to businesses as required. They offer their services to businesses across the community, though it is likely that the majority of their clients are within a district.
Every contractor has at least 5 businesses that they serve within their expertise. Based on their area of specialization, a contractor can have more than 5 clients. The agency works with them to ensure they are well-qualified to offer the services they mean to and are registered accurately by the agency.
For instance, a contractor may be an expert in identifying and mitigating crop failure risk in farmland. He is likely to be a seasoned agronomist or experienced farmer who understands a crop and an area well enough to advise farming businesses. Because there is a sizeable number of farmers in the community, he will likely have several clients to serve, but within a narrow scope, giving them even more expertise and charging a premium for their services.
Once the contractor engages with the business owner and resolves their problem, they also file a report with the bureau president who serves the business owner’s demographic in that district. The report details the problem that needed a contractor’s assistance and any shortcomings in the system that the agency can resolve. After further consultations with the contractors, the bureau president forwards recommendations to the agency presidency for action. The agency also hires contractors when it needs to adjust its workings.
Inter-agency cooperation
Agencies extensively interact within their bureaus, but also within their columns. Community agencies form 3 columns, of 8 agencies each. The Underwriting and Risk Management Agency is part of the third column.
During the factoring process, the Underwriting and Risk Management Agency liaises with the Business Operations Agency (agency 3) for underwriting services, and therefore price the factoring services accordingly. In this way, the Underwriting and Risk Management Agency conducts underwriting on all businesses.
The Commercial Bank (agency 9) relies on underwriting by the Underwriting and Risk Management Agency when issuing loans to villages through the Business Operations Agency. Underwriting reports are also consumed by the Recreation and Arts Agency as it considers whether to insure community assets and at what premiums.
The QHSE Agency (agency 18), which helps the community with quality, safety, and health standards, and environmental protection collaborates with the Underwriting and Risk Management Agency in assessing the risks that non-compliance to standards poses, and how they can be addressed. The Audit and Internal Controls Agency (agency 15) also works with the Underwriting and Risk Management Agency to come up with strong controls that help mitigate risks and losses arising from business operations or environmental circumstances.
Presidencies’ offices, meetings, and quarterly conferences
Offices
The Underwriting and Risk Management Agency’s agency presidency has permanent offices in District Building 21 on the western side. The eastern side has offices for the trustee and Regulatory Bureau presidencies that serve the agency and District 21.
Trustees and the regulatory bureau presidencies alternate their offices. Trustees have the offices in building 21 on Tuesdays and Thursdays, while the bureau presidencies use the offices on Mondays and Wednesdays, as shown in this timetable:
| Building 9/ Commercial Bank | Building 21/ Underwriting & Risk Management | |
|---|---|---|
| Monday | Trustee presidency | Regulatory Bureau presidency |
| Tuesday | Regulatory Bureau presidency | Trustee presidency |
| Wednesday | Trustee presidency | Regulatory Bureau presidency |
| Thursday | Regulatory Bureau presidency | Trustee presidency |
The Business Development Bureau presidencies have offices on the first floor of every district building, with 2 of the 48 presidencies (8 presidents) occupying 8 offices in one building. This graphic shows District Building 21’s first-floor layout, with offices for the agency presidency, trustees, and various business presidencies indicated.
Working hours and meetings
All community public servants work from Monday to Thursday, from 8:00 to 8:45 in the morning. For the Underwriting and Risk Management Agency’s agency presidency, this time is dedicated to reviewing reports from bureau presidencies and effecting changes to the system and strategies. For bureau presidencies, the time is used for interacting with the system and contractors and gauging both parties’ ability to meet participants’ demands. On Thursday, each presidency (four presidents serving A, B, C, and D) meets for a 45-minute meeting from 9:00 to 9:45 in the morning.
On the last Friday of each quarter, between 9:00 AM and 12:00 PM, each demographic presidency meets. The three-member presidency discusses common bureau matters that are of interest to the demographic they serve. On Saturday, again between 9:00 AM and 12:00 PM, the whole board meets, where the presidents present their input from the previous day’s demographic presidency meeting, and prepare for the quarterly conference. The aim is to have a cohesive presentation during the quarterly conference but tailored to specific demographic interests.
Quarterly conferences
Quarterly conferences are held on the last Sunday of each quarter, from 9:00 AM to 3:00 PM, with a lunch break in between. During quarterly conferences, each demographic presidency sits together in the same row.
Quarterly conferences are held in District Buildings 5 and 17. Each building has a lower and higher assembly court. The different demographic groups use the assembly courts as follows:
| Building | Assembly court | Demographic |
|---|---|---|
| 5 | Lower court | Married men (A) |
| 5 | Higher court | Married Women (B) |
| 17 | Lower court | Single women (C) |
| 17 | Higher court | Single men (D) |
Each of the four assembly courts has seats for 480 presidents representing the respective demographic. In the diagram below each of the 4 courts is illustrated. The ceiling of each court has an elliptical arch that enables agency presidents, who are the only ones who make a presentation during the conference, to speak without the need to amplify their voices. The 480 seats are easily rotatable to enable presidents to face whoever is speaking.
Each of the four courts has an identical arrangement and number of seats. The exact arrangement of each court can therefore be illustrated using one court, in this case, building 5’s lower court that is used by married men (A).
Some additional notes/definitions from an earlier version of this page:
- There are several areas that businesses must focus on to mitigate risk. They include corporate governance, operational efficiencies, quality of audits, and best business practices, among others. Of particular concern is corporate governance. The Underwriting Agency will guide participants and agencies on sound corporate governance practices, as a primary way of mitigating economic-related risk (Ionescu, G. and R. Vilag. “Risk Management, Corporate Governance and Sustainable Development.” Ecoforum 4.1 (2015): 87-90).
- There is a strong positive relationship between economic development and insurance, among other contributions not necessarily applicable to the community, such as capital transformation and pooling resources, insurance helps in risk hedging. This enables individuals and businesses to go about their activities without the shadow of potential loss hanging over their heads (Ul-Din, S., et al. “Does insurance promote economic growth: A comparative study of developed and emerging/developing economies.” Cogent Economics and Finance 5.1 (2017)).
- Underwriting risk includes pricing it, and thereafter taking over the risk. When pricing, the underwriter will include the chance of a risk happening, the potential loss if the risk does occur, among other issues. This in turn affects the risks a business is willing to undertake, and the risk-mitigating strategies it has in place. The process will be similar in the community, albeit automated this time (Jakovčević, D. and M. Mihelja Žaja. “Underwriting Risks as Determinants of Insurance Cycles: case of Croatia.” International Journal of Economics and Management Engineering 8.5 (2014): 1251-1258).
- Insurance companies reserve the right to pursue the third party who caused a loss (subrogation), after compensating the insured, to the extent of the loss suffered (indemnity). These principles will still apply in the community, whereby, especially in cases where the third party is outside the community, community-based insurers will still exercise their right of subrogation, with assistance and advice from the Underwriting Agency. Insurable risks are only those that can result in a loss, or leave a party in the same position if they occur (Basedow, J., J. Birds and M. Clarke. Principles of European Insurance Contract Law (PEICL). Munich: European Law Publishers, 2009).
- Unlike in past years where underwriting was viewed more as a decision-making art, it is now driven more by scientific data analysis and decision-making. The future of underwriting will be more data—intensive, as technology plays a more critical role in analyzing data and assisting in decision-making. The Underwriting Agency will be well served to continually update its systems to match industry changes (Ernst & Young. The future of underwriting. special report. New york: Ernst & Young, 2015).
- Insurance companies help organizations manage their exposure to risk through various solutions, such as risk engineering, operational efficiency advice, among others. These exercises are meant to minimize the chances of risks occurring, as well as the costs should they occur. In the community, this will be achieved through a concerted effort to equip businesses better will risk-management tools, while updating the community’s posture to risk so that it can offer meaningful help (Denes, F. How can you help engineer the best risk management solutions for your clients? 14 10 2016. 16 06 2019).
- Insurance companies are interested in avoiding risk as much as possible, so that their costs because of claims can be minimized. While the motivation may mostly be profit, it also compels them to proactively engage companies to reduce the occurrence of risk. The Underwriting Agency will not have profit as a primary role, but it will still be mandated to protect the community’s property and interests, by equipping it with the necessary disaster management and mitigation tools, including training and planning (National Research Council. A Safer Future: Reducing the Impacts of Natural Disasters . Washington, D.C.: National Academies Press, 1991).
- Admitting people into an organization is a process fraught with risks. Their expected impact on the entity’s performance is not guaranteed, as is their attitude, which will be instrumental in getting them to perform optimally. Additionally, unforeseen circumstances might come up, including obsoleteness in their trade, illness or even death. The Underwriting Agency helps the community minimize the risk of such eventualities from happening, by using its own risk assessment system to better understand the incoming participant, and thereafter decide whether or not they present a worthy addition to the community, economically and socially (Roberts, M. A Brief Overview of Risk Management In Recruiting. 21 06 2016. 14 06 2019).