Page 63 - RISK Management IC86 Ebook

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Managerial decisions

n Put the risk manager's role in an advisory capacity and have
no authority on the line manager or his subordinates, whose
priorities in taking a decision may be guided by factors other
than risk management.

STEP 5 : Monitoring and improving the risk management
programme

n Once implemented a risk management programme must be
monitored to ensure that it is achieving the expected results
and to adjust it for changes in loss exposures suitable risk
management techniques.

n An essential element at this stage will be to set standards of
acceptable risk management performance and comparing
actual results with these standards and corrections for
improving the performance.

n For organizations, communities and the entire economy, the
costs of risk management include values lost through accidents
that do occur, net benefits forgone from activities that remain
too risky to undertake and resources devoted to risk
management programs.

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