ABSTRACT
This chapter discusses risk management, and the topics of insurance and finance. Insurance and finance are part of risk management. The debt-collection agency Intrum Justitia has been carrying out research into payment risks, payment behaviour and various credit management variables in 22 European countries. The most common forms of payment are: clean payment, clean collection, documentary collection, documentary credit and international bank guarantee. Insurance can be sub-divided into indemnity insurance and insurance of fixed sums. To cover a quality risk a number of types of insurance have been developed: product liability insurance, product recall insurance and product extortion insurance. The best coverage depends on the type of goods, type and means of transport, packaging and destination: transport insurance, general average insurance, carrier’s liability insurance and sellers’ interest insurance. There are various alternatives to credit insurance, such as letters of credit and cash against documents.
