Presentation of risk management ppt/ppt of management

Risk management ppt/ppt of management introduction

What is Risk- uncertainty of occurrence of any unforeseen event

Let’s explain pure Risk – It Always leads to loss

What about speculative Risk – It May result in a loss or a gain

What is static Risk – it results in losses

Defining dynamic risk – may result in loss or gain

Elements of Material Risk – Building,Plant & machinery,furniture,fixtures,fittings,stocks

Define Consequential risk – loss of production, loss of profit, loss of market, good will

Social Risk

Legal risk – product liability,public liability

Political risk – subsides,sanctions, etc.

The processes of risk management

• Identification of Risk
• Various methods
• Some are quantitative, some are qualitative
• Check List
• Flow chart
• Risk inspection
• HAZOP
• HAZAN
• Fault Tree Method
• Hazard Indices

Risk evaluation

• Arrange them in order of priority
• Provide information for deciding the most appropriate way of handling
• Ranking risks according to:
• 1.Frequency of loss
• 2.Potential severity of loss

Risk Analysis

• Risk and human behavior looks into psychology of risk.
• How others look at the risk?
• How they behave in the face of risk?
• How they behave in groups
• Perception of risk.

The cost of the analysis and the correct procedure would be considered in the case of conducting a proper risk analysis

• Not to stick to one method
• Understand company and industry
• Should be financially reasonable
• Accurate record keeping
• Amount of imagination of required

Risk reduction / Loss Prevention

• It tries to reduce probability of loss and it’s severity.
• It is most important for RM process.

Risk Reduction/Prevention can be from:

• Loss prevention
• Safety
• Fire protection/Detection
• Environmental protection

Risk retention if:

• Charge losses against normal operation cost.
• Contingency fund
• Borrow the cost of any loss, repaying over agreed period.

Risk Transfer:

To insurers – pure risk

Risk Management - common sense

• Disproportionate emphasis on risk finance like
• Self insurance alternatives
• Non-insurance option of retention
• Assumption of loss by numerous techniques
• Not enough attention on loss prevention, safety and loss control

Risk management

Risk Management ppt?

• On going plan to avoid circumstanced and events that can cause loss and minimize the operational and financial impact of loss, should it occur.
• Thus it includes loss prevention and loss finance

Mom and pop business => Large risk

Light at night to prevent burglary => Burglary alarms, surveillance,petrol’s, etc

House Keeping => House keeping

Loss finance from insurance proceeds => Loss Finance from insurance proceeds

Withdrawal of savings =>Surplus (savings)

Loan from banking => Loan from the bank

Thus, risk management principles for small and large risks are more or less the same.

Risk Management

• It involves Insurance but is more than a simply insurance
• it is specified as a part of financial management but is more than that
• It may require knowledge of chemical processes, fundamentals of fire, physical properties of different materials but it is more than tha
• requires statistical techniques but is more than loss statistics
• Thus RM involves a multi-disciplinary approach
• insurance managers, fire engineers, statisticians and the like are dealing with many aspects of risk but no one takes overall view of risk
• a risk manager should look into overall view of the risk
• co-ordinate with various line managers to get the same

Sources of ignition

The main sources of ignition involved in almost all industries are:

• smoking
• heat of cutting
• spontaneous oxidation from grinding
• welding
• cutting
• hot surfaces such as furnaces etc
• electrical sparking
• arching
• impact ignition

Risk Exposure Data – What to look for?

• regulation of entry and exit of persons, vehicles, trucks & materials
• source of water and quantity of storage facility
• condition of electrical wiring and installations
• condition of machinery, their maintenance, hazards involved with them , presence of qualified personnel to handle them
• condition of electrical equipment, their maintenance and presence of qualified personnel

• terrorism exposure
• proximity to water bodies – river, lake, sea,drains
• Internal & external drainage system
• Congestion at the site
• Layout of the plant

• inter connectivity of roads/accessibility
• proximity to fire stations/police station/hospital
• condition/location and number of emergency exits/stairs/gates
• earthquake exposure of the buildings
• flood/inundation exposure
• landslide/rockslide exposure
• employee – employer relations ( Industrial Relation)
• Type of labour employed – young/mature – skilled / unskilled…
• condition of raw/process/intermediate & finished materials stored – flammable / hazardous.
• major changes in the future/near past
• neighboring occupancies & their exposure
• history of natural disasters / AOG Perils – Flood / Eq./Landslide/Storm
• general law & order & political situation in the area
• terrorism exposure in the area
• adherence to no smoking regulation
• installation of the FEA’s – their adequacy and placement – their maintenance
• general awareness of the employees and their training regarding FEA appliances installed/their usage
• presence of trained full time safety & fire officers & staff
• quantity and quality of security staff
• condition of buildings and their construction
• condition and construction of boundary wall
• exposed openings and presence of combustible materials
• quantity of fire load
• presence of forest/bushes/vegetation in the vicinity

• ISO certifications
• she policy/Maintenance philosophy
• enforcement of work permit system ( hot/cold/electrical/at heights etc.)
• general housekeeping ( Orderliness and cleanliness)
• management awareness & involvement in safety and security matters