www.BusinessInsuranceAssociates.com
05/07/11 20:55, by
pobbs, Categories:
Auto
- An organization's risk management program must be tailored to its overall objectives and should change when those objectives change.
- If you are in a "safe" business (relatively immune from depression, bankruptcy, or shifts in products markets), your risk management program can be more "risky" and less costly.
- Don't risk more than you can afford to lose.
- Don't risk a lot for a little.
- Consider the odds of an occurrence.
- Have clearly defined objectives that are consistent with corporate objectives.
- The risk management department as a user of services should award business on the basis of ability to perform.
- For any significant loss exposure, neither loss control nor loss financing alone is enough; control and financing must be combined in the right proportion.
- Review financial statements to help identify and measure risks.
- Use flow charts to identify sole source suppliers or other contingent business interruption exposures.
- To more fully identify and assess risks, you must visit the plants and relate to operational people.
- A reliable data base is essential to estimate probability and severity.
- Accurate and timely risk information reduces risk, in and of itself.
- The risk manager should be involved in the purchase or design of any new operation to assure that there are no built-in risk management problems.
- Be certain environmental risks are evaluated in mergers, acquisitions, and joint ventures.
XML Feeds