This chapter emphasis on : Characteristic of risk Concepts related to risk The measurement of...
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Transcript of This chapter emphasis on : Characteristic of risk Concepts related to risk The measurement of...
LEARNING OBJECTIVES
This chapter emphasis on :
Characteristic of riskConcepts related to riskThe measurement of riskThe management of riskThe characteristic of insurable risks
CONTROLLING THE RISK MANAGEMENT PROGRAMME
IMPLEMENTING THE RISK MANAGEMENT PROGRAMME
SELECTING RISK HANDLING TECHNIQUES
EVALUATING POTENTIAL LOSSES
IDENTIFYING LOSS EXPOSURES
Identify all the loss exposures or pure risk includes:
Physical damages Loss of business interruptionLaw enforcementOrganizational loss due to fraud, white
collar crime by the staffsDeath/loss of important employees
1. IDENTIFYING LOSS EXPOSURES
Information of loss exposure can be gathered through:
a) Questionnairesb) Financial
statementsc) Flow chartd) Self inspection
on facilities
Loss frequency and severity Level the exposures according to priorityExposures that has the highest potential
of loss will be given priority
2. EVALUATING POTENTIAL LOSSES
Select the techniques of handling risk based on financial & non-financial criteria
Non financial criteria such as human needs and legal requirement
3. SELECTING RISK HANDLING TECHNIQUES
Risk type
Loss frequency Loss severity Suitable techniques
1 Low Low Retention
Matrix of Risk Management Table
Risk type
Loss frequency Loss severity Suitable techniques
1 Low Low Retention
2 High Low Retention & loss control
Matrix of Risk Management Table
Risk type
Loss frequency Loss severity Suitable techniques
1 Low Low Retention
2 High Low Retention & loss control
3 Low High Insurance
Matrix of Risk Management Table
Risk type
Loss frequency Loss severity Suitable techniques
1 Low Low Retention
2 High Low Retention & loss control
3 Low High Insurance
4 High High Avoidance
Matrix of Risk Management Table
The organization should implement the well planned of risk management from time to time
Resulting of good risk management :1. Prevent/reduce of workplace accident2. Decrease the loss frequency3. Reduce the cost of burden loss severity4. Increase the organizational value added (zero defect)
4. IMPLEMENTING THE RISK MANAGEMENT PROGRAMME
Risk management program should be monitored Objective program can be achievedIf necessary, improvement of the program should
be taken
5. CONTROLLING THE RISK MANAGEMENT PROGRAMME
GROUP ACTIVITY 1:
After watched the Risk Management video, please:Discuss within the group the risk management process that you have watched.Use the process of risk management provided as your guideline In 15 minutes time, please come up with your discussion. Note : You are free to Present your work using slide show, card or writing in whiteboard (or any other material that you feel ease to use)
video.mp4