Historical Development of Risk Management
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 British insurance programmes were introduced
3. Post colonial period-A.S.I.P. disintegrated and strong British insurance programmes took lead.
PRE COLONIAL ERA
In 13th century, before the inversion of the Arabs and the Portuguese on east African coast, the African communities that lived here settled together in small co villages for social, economic, and political risks. The communities provided their own food, shelter, defence from hostile neighbours and animals and lived in close knit society.
Burdens were shared cheerfully among these members in the same way joys and achievements were. Important things were owned by every member of the society e.g. children belonged to the society. This enabled the nurturing and flourishing of African socialism.
The community lenders used their own wisdom and experience to deal with social, economic and political problems facing them. These were the social insurance programmes which operated on voluntary bases
The community members then pooled resources to create a “social insurance fund” in which “premiums” were paid ranging from material to moral support or payment. Participation in the programme was ensured through continued membership.
From the insurance pool, payments were
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 British insurance programmes were introduced
3. Post colonial period-A.S.I.P. disintegrated and strong British insurance programmes took lead.
PRE COLONIAL ERA
In 13th century, before the inversion of the Arabs and the Portuguese on east African coast, the African communities that lived here settled together in small co villages for social, economic, and political risks. The communities provided their own food, shelter, defence from hostile neighbours and animals and lived in close knit society.
Burdens were shared cheerfully among these members in the same way joys and achievements were. Important things were owned by every member of the society e.g. children belonged to the society. This enabled the nurturing and flourishing of African socialism.
The community lenders used their own wisdom and experience to deal with social, economic and political problems facing them. These were the social insurance programmes which operated on voluntary bases
The community members then pooled resources to create a “social insurance fund” in which “premiums” were paid ranging from material to moral support or payment. Participation in the programme was ensured through continued membership.
From the insurance pool, payments were