An insurance company in Trinidad and Tobago seeks to ensure that investments from premiums collected yield...

An insurance company in Trinidad and Tobago seeks to ensure that investments from premiums collected yield adequate rate of returns in order to process claims and generate a profit. Which of the following financial risk management objectives do they aim to achieve?

Select one:

a. All of the options in this question

b. To reduce the level of risk bank creditors may be exposed to

c. To avoid the misuse of banks

d. To enhance the risk-return profile of the organization’s portfolio

Expert Solution

Insurance company wants to ensure that investments from premiums collected yield adequate rate of returns in order to process claims and generate a profit.

For this the most important thing is - to enhance the risk-return profile of the organization’s portfolio(option d)

Doing this will eventually result in reduction in risk level that bank creditors may be exposed to and will avoid misuse of money.

Thus, options B and C are also valid.

Hence, correct answer is

a. All of the options in this question

jeff jeffy answered 2 years ago

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