Page 62 - RISK Management IC86 Ebook

Risk Management

n Other objectives would refer to emphasis on 'stability of
earnings over time' rather than 'maximising earnings in any
short time period' would overinvest in loss prevention devices
rather than absorb regular small losses. A non-profit service
organization would put emphasis of uninterrupted operations
despite accidental losses.

STEP 4 : Implementing the chosen risk management
technique

n Fundamental requirement of a well managed risk management
programme is that any chosen techniques should capable of
being implemented and monitored. Implementing the chosen
techniques involves technical decisions by the risk manager
or his team and managerial decisions by plant managers or
line managers.

Technical decisions

n Would enable precisely deciding what should be done. For
example if an organization decides to insure a particular loss
exposure, then the risk manager must make technical decisions
to select appropriate insurer, set proper limits and deductibles
and negotiate purchase of that insurance.

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