Page 51 - RISK Management IC86 Ebook
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b) prevent loss i.e. the risk exists but no loss occurs
c) detect and reduce the extent of the loss
d) rehabilitate, restore and recover.
n The amount of money spent can be kept to a minimum by
providing for the measures whenever possible during the early
stages of the creation of a hazard and by implementing
measures that change the level of risk.
Loss Control Management
n The purpose of Loss Control Management is to limit the total
cost of losses to the lowest possible level by implementing
measures which:
a) prevent losses from occurring i.e. eliminating the cause
of loss
b) protect people and/or property from loss
c) limit the extent of any loss that may occur
d) maximise the recovery from any loss that has occurred
The measures to limit the extent of any loss and to
maximise the recovery from loss are of two basic types:
A) Passive
l i.e. the nature of the measure itself limits the/loss or
facilitates recovery without any change in state e.g.
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