The Role and Importance of Insurance of Business and Supply Chain Interruptions

Vladimir Njegomir; Jelena Demko Rihter

Vladimir Njegomir High School „Legal and Business Academic Studies dr Lazar Vrkatić“, Novi Sad
Jelena Demko Rihter Faculty of Technical Sciences, Trg Dositeja Obradovića 7, Novi Sad

Abstract

The subject of this paper is the issue of business continuity and risks of disruptions and the role of insurance. Special importance is given to the problem of supply chain sustainability. The critical element of success in business is maintaining continuous operations. If companies are not in a position to achieve that aim, or to finance their losses after an accident that can cause interruption, they certainly will fail. Insurance has a pivotal role in business and supply chain continuity risk management. As well as in all other cases, insurance cannot directly safeguard companies from accidents and subsequent disruptions but is the most important source of indemnification for losses when insured events materialize. Unlike developed economies, this type of insurance still does not have such importance in Serbia and other former Yugoslavian republics. We conclude that insurance, as an integral part of risk management efforts, should be combined together with other risk management techniques in order to provide business and supply chain continuity.

Author Biographies

Vladimir Njegomir, High School „Legal and Business Academic Studies dr Lazar Vrkatić“, Novi Sad

Vladimir Njegomir was born in Novi Sad in 1977. He earned his master’s and doctoral degrees in the field of risk management, insurance and reinsurance. He was awarded as the best student of the generation at the Faculty of Economics in Subotica. After the completion of his graduate studies within the stipulated time, he was employed as an economic analyst in a software company based in London, where he worked for nine years as business analyst, specialized in the insurance business. In 2010, he was appointed assistant professor at the Faculty of Legal and Business Studies in Novi Sad, where he teaches the “Insurance” and “Insurance Risk Management”. He has participated in projects and scientific conferences at home and abroad. He is the sole author of two books, co-author of three books and over 120 scientific papers in the field of risk management, insurance and reinsurance, both at home and abroad. He speaks English. He lives and works in Novi Sad.

Jelena Demko Rihter, Faculty of Technical Sciences, Trg Dositeja Obradovića 7, Novi Sad

Jelena Demko Rihter is an Assistant Professor at the Faculty of Technical Sciences, Department for Industrial Engineering and Management, Novi Sad. She holds a MSc and a BSc in finance and a PhD in management accounting. Since 2003 she has been engaged in the teaching process at the Faculty for subjects Management Accounting, Financial Management, Investments. She is the author and co-author of many research and scientific papers on various issues regarding institutional investors, business financing, clusters, management accounting.