Page 30 - RISK Management IC86 Ebook
P. 30
Risk Management
covering items like insurance coverages in place, disaster
management procedures etc.
D) Controlling the risk management programme
The tasks in this stage involves
l Setting performance standards and metrics,
l Judging/comparing actual performance deviations with
such standards and
l Taking corrective actions to improve future performance.
E) Formulating a risk management policy
l Risk management policy statement in a written format from
the senior management, is an effective communication tool.
It reflects what the company is trying to do, its normal
operating methods / strategy.
n The policy statement will differ from company to company
depending on its activities, approach to risk management and
overall goals. Such a statement can do the following:
l Emphasises the function of risk management,
l Provide framework for assessing responsibility for
controlling / financing losses,
l States risk management department's position in the
organization structure.
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