Page 35 - RISK Management IC86 Ebook
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l Risk identification can not be a 'one-off ' exercise but
continuous monitoring & review are important,
l Whatever is planned must be financial reasonable; there
is no logic in spending Rs.100 on identifying a risk that
can only result in a Rs. 10 loss
l Accurate record keeping must accompany any risk
identification
l Certain element of imagination is required in anticipating
risk, which can come only through experience.
Types of risk identification techniques
n Study & Enquiry
l It is done through initial risk information sources and document
review. E.g. Analysis of the annual accounts gives a broad
indication of the type of activities that are involved together
with the amount of assets employed and the earnings that are
being made.
n Physical Inspection / Surveys
Done by site visits which facilitates understanding site
operations and functions and helps in
a) Identifying risks on & in the vicinity of the site
b) Assessment of the risk handling capability of site
management & staff
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