Page 50 - RISK Management IC86 Ebook
P. 50
Risk Management
l Maximising the salvage
l Effecting rehabilitation as soon as possible after the
occurrence.
n The purpose of risk control is to minimise the total cost of
risk to an organisation whilst at the same time ensuring the
long term economic survival of the organisation.
n As mentioned earlier, in determining the total cost of risk the
following must be taken into account:
a) the cost of the injury or damage;
b) the cost of handling and settling the loss;
c) the cost of any risk control measures;
d) the cost of any loss financing measures;
e) the costs recovered from any loss financing measures,
such as insurance, that have been put in place by the
organisation.
n All risk control and financing measures cost money but some
are more cost effective at minimising the total cost of risk
than others. The risk control measures can be divided into
those that:
a) eliminate or reduce the risk
Sashi Publications - www.sashipublications.com 51
Copyright@ The Insurance Times. 09883398055 / 09883380339
