Risk Management

Question

Discuss the ways that Issues Management can prepare an organization to handle Risk Management. What makes them different? Similar?

Answer 1

To enlist the participation of employees in handling risk management/creating a risk management program, you must first create a series of action steps to address all of the organization's risks of financial loss: The process includes:

Identify all risks of financial loss, e.g. loss or damage to tangible property, e.g. buildings, contents, vehicles, money, by fire, windstorm, water water damage, hail, theft injuries, death, or disability of employees, fluctuations in the market, loss of income due to loss or damage to tangible property;

Evaluate each risk of financial loss in terms of its importance/priority to the organization, e,g, short and long term cost and urgency;

Hope this helps!

Select the optimum methods of addressing each risk of financial loss, e.g. insurance transfer, non-insurance transfer, e.g. hold harmless agreements, retention/self insurance, avoidance, loss control (methods to reduce the frequency and severity of loss, e.g. no smoking signs, driver training, vehicle maintenance, zero injury incentives for employees, sprinkler systems, smoke, theft alarms, etc.) or any combination of these methods, e.g. high deductible insurance, etc.;

Implement the chosen methods of addressing each risk of financial loss on a date(s) announced to employees at least two weeks to a month in advance;

Monitor the chosen methods of addressing each risk of financial loss at predetermined intervals make any necessary adjustments.