Page 42 - RISK Management IC86 Ebook

Risk Management

l regionally & worldwide as applicable.
b) Examine if the statistics is relevant.
c) Examine how your circumstance differ for the parameters of

l Time
l Place
l Process / operation
l Management
l Loss control measures
l Staff/ employees
l Volume sales / units
d) Scope for correction,
e) Adjustments for
l Volume
l Inflation,
l Special circumstances, if any.
n While using loss experience statistics, corrections will be
required to obtain realistic figures, for the factors of-
i. INFLATION - In respect of liability losses, the current

level of court awards may be higher than those available
in the statistics. This is called social inflation & needs to
be suitably adjusted in the available statistics.

ii. EXPOSURE IN UNITS - If available statistics relates to
two shifts in a day operations of a section of a factory
which is now working in three shifts or number of

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