Abstract: Terms such as social policy and labor market policies seem no t be very current. Instead, we speak
more and more about risk management. Social Risk Management is a concept developed by the Word Bank.
It is a tool to transfer management techniques from the operating or finance in the social and labor market
policy, to support individuals, households and communities to better manage their risk. Due to poor incentive
structures, inad equate insurance policies or control often remain under preventive, palliative and solidarity
balancing risk management measures. This paper sets out to define the term of social risk management,
describing the basic features from different perspectives and the main measures and strategies used in social
risk management area. The essay con siders the most discussed word of risk management as a moral
opportunity to redefine the balance of responsibility and solidarity in the labor market.
Keywords: social policy; risk management; labor market; public finance
1. What is the Social Risk Management
The World Bank developed in 2000 a new conceptual approach for social security policy. This
concept puts focus on the analysis of human risks and is used to apply business methods of risk
management, such as in banking or insurance. It extends the basic framework of social policy that
consists of public interventions to assist individuals and communities better manage risk. It also
includes support to the critically poor people.
When using the concept of risk management, we put the question who should be responsible in
handling with risks and what rights and obligations may he has. That means no more and no less than
how to split your work when dealing with risks between individual, family, company, association and
the public administration in order to be able to solve a risk situation.
Risks affect both the individual behavior and the choice of solving a problem in the relation with
institutions and relevant actors. This means the division of responsibility between individuals, families
and communities, businesses and government.
1 Senior Lecturer, PhD, Spiru Haret University, Bucharest, Romania. Address: 13, Doamnei Str., Bucharest, Romania, Tel.:
+4021 455 1000, Corresponding author: firstname.lastname@example.org.