Historical Development of Risk Management

1354 Words Jun 21st, 2012 6 Pages
HISTORICAL DEVELOPMENT OF RISK MANAGEMENT FUNCTIONS.

INTRODUCTION
Risk management is the idea that a logical, disciplined approach to the future’s uncertainties to live with it productively and efficiently. Prior to risk management, faith and luck were the two pillars of managing the future. Events have causes. Believing in luck obscures the causes. Difficulties arise in tracing the history of risk management in Kenya, but from various sources of information we have come up with some report about it.
Historical development of risk management in Kenya is categorised in three periods;

1. Pre colonial period-where strong African social insurance programs (A.S.I.P.) were used

2. Colonial period-the A.S.I.P. were weakening and
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Thousands of nationalism amongst Kenya communities grew stronger by the day leading to British consent to brand Kenya freedom in 1963.over this period two important developments regarding insurance were taking place;

1. The African Social Insurance programmes were fast crumpling due to political, economic and social instability brought about by colonialism.
2. The colonial government and earlier settlers through their practices introduced commercial insurance practices to cover their business interests in the area.
The British settlers initiated economic activities which attracted British entrepreneurs who too followed suit by setting up business to service the settlers’ needs when at the same time producing products for European markets.
Companies such as imperial British East African Company quickly fortified their presence in the colony and were quickly followed by others like unilever.
The presence of British citizens and businesses in Kenya called for protection against various risk exposures and British insurance frontally responded by setting up agency offices to service the colonies insurance need.
With time and the volume of insurance business, the colonies were generating some insurance converting these insurance agency offices into branch network becoming the first foreign insurance company in Kenya.

THE POST COLONIAL PERIOD

At independence time, 1963,
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