Page 118 - RISK Management IC86 Ebook
P. 118
Risk Management
Examples of the second category include the following
a) Medical bills a family has to incur when one of its members
falls ill,
b) Extra expenses incurred from the delay in filming a movie
when the lead hero or heroin falls ill,
b) Extra costs necessitated for employing and training new staff
if the old ones do not return after a long shutdown, etc.
Financial effects of personnel loss exposures
Temporary vs. Permanent temporary loss of an individual
Significance of temporary loss of an individual will be guided
by answers of the following questions
a) How long the key person will be absent?
b) What is the cost of finding and training a suitable
replacement?
c) How long the replacement will take to achieve desired
level of competence?
d) How much will be the total cost for such replacement?
(This will include partial wages paid to the temporarily
lost employee.)
e) When the regular employee returns back for work, what
will be the costs of reinstating him?
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