Page 24 - RISK Management IC86 Ebook
P. 24
Risk Management
Post loss objectives
a) Survival
b) Continuity of operations
Objective of continued operations without any interruptions
is more demanding on the resources and the costs as compared
to that of mere survival. In such situation, the risk management
programme should logically take into account the following
steps:
l Identification of critical operations/activities whose
stoppage can not be tolerated,
l Identification of types of accidents that could interrupt
such operations/activities.
l Ascertaining the stand-by or alternate resources that should
be immediately available to counter effects of those
accidents,
l Ensuring availability of such stand-by or alternate
resources, even at most difficult times, which would
involve additional costs.
c) Profitability
The risk management programme, under such a situation,
would aim at reducing both the loss exposure and financial
consequences of loss by transferring to insurance or other
means. Obviously the cost of managing risks for such an
organization would be larger.
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