Page 32 - RISK Management IC86 Ebook
P. 32
Risk Management
Chapter - 4
Important Steps in Risk Management
Decision Making Process - Part 1
n Important steps in the risk management process are
the following:
Step 1. Identifying & analyzing Loss Exposures
Step 2. Examining the feasibility of alternate risk management
techniques
Step 3. Selecting the best technique
Step 4. Implementing the selected technique
Step 5. Monitoring & improving the programme.
n STEP 1. Identifying & Analyzing loss exposures
The most important and significant loss exposures to an
organization are those which can interfere with achieving the
business targets. Proper identification and analysis of such
loss exposures will depend upon three important factors,
which are -
l Classification scheme for identifying all possible
exposures,
l Employing proper methods,
l Degree of such exposures in terms of impact on objectives.
Sashi Publications - www.sashipublications.com 33
Copyright@ The Insurance Times. 09883398055 / 09883380339
