Which of the following is a procedure created around insurance risks?

The choice regarding controlling underwriting authority is a procedure specifically designed to manage insurance risks effectively. Underwriting authority refers to the limits set on how much risk an underwriter can accept on behalf of the insurance company. By controlling this authority, insurers can ensure that risks are assessed and accepted according to predetermined guidelines that align with the company’s risk appetite and financial strategies.

This procedure plays a crucial role in risk management because it helps prevent the acceptance of risks that might exceed the insurer's capacity to handle them, thereby safeguarding the insurer's financial health and stability. It ensures that underwriters adhere to policies designed to manage risks systematically, which is essential for maintaining the integrity of the insurance process.

In comparison, the other options, while related to aspects of risk management, do not specifically outline a systematic procedure focused directly on controlling risks within the underwriting process. Increasing coverage limits and determining financial capacities relate more to the acceptance of risks rather than their control, and standardizing claim processes addresses the handling of claims post-incident rather than the preventive management of risks during underwriting.