Page 129 - RISK Management IC 86

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(d) Nature of the Organization - Risk attitude of
corporate also depend on the type of company. Apart
from small traders and central government
organizations, organizations can be considered under
four main headings :

(i) joint stock companies
(ii) family - owned companies
(iii) nationalized industries and
(iv) local governments and public utilities.

Q3. Explain the roles of the following functional
departments of a firm in the process and
implementation of risk management:

Ans. (a) Finance - Since the finance department possess the
information required to value potential losses, and
inevitably will be involved in formulating the
organization's risk handling policies.

(b) Production -Production managers are directly
involved in many of the activities that create risks,
and may be given responsibility for safety and
security.

(c) Materials - Work managers are directly involved
in many of the activities that create risks, and

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