Page 44 - RISK Management IC86 Ebook
P. 44
Risk Management
n Human assets exposures - e.g. employees, managers,
board members
n Legal liability exposures - e.g. public & product liability
l These exposures, considered to be within the risk field i.e.
they are influenced by the hazards and risk factors posed by
the environment to which they are subjected to.
The COCA organization
l The word COCA stands for Contracts, Obligations,
Commitments and Agreements. It is a basic assumption of
risk assessment that these arrangements entered into by a
business with other parties imposes certain responsibilities
and liabilities on the business.
n CONTRACTS - are legally enforceable arrangements that
meet the basic test of offer and acceptance, consideration,
legality of purpose and legal capacity of the parties.
n OBLIGATIONS - are legally binding arrangements that
are required of an organization. They are legally imposed
upon the business by a regulatory requirement.
n COMMITMENTS - are intended to convey self imposed
duties. Moral and ethical values represent pervasive
commitments.
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