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P. 34
Risk Management
v) Growth
vi) Legal requirements
vii) Industrial relations
Risk identification purpose and details
n The purpose of risk identification is to ensure that, each loss
occurring event can be considered and a means of providing
for the consequences of the risk, should a loss occur, is put
in place.
n The risks that are to be identified are pure risks that have a
financial cost to them.
n Risks can only be assessed / evaluated, controlled and financed
once they have been identified. The process of risk
identification, therefore, assumes great importance.
n Though a number of techniques or methods of risk
identification can be employed, there are a number of important
common factors to be remembered, viz.
l One particular method of identification may not be
sufficient to address all the problems posed by any
company,
l Certain methods are more useful in some industries than
others
l Consultations with people from various departments can
give valuable inputs on risk perceptions in a realistic manner
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