Page 132 - RISK Management IC 86

Risk Management

It should consist of steps to be followed under various
circumstances and assign responsibilities of carrying
out various tasks during emergency. The employees
need to be trained to handle emergencies and everybody
should be assigned clear responsibilities.

Certain arrangements can be made from before, e.g,
mutual assistance arrangements with competitors to
assist in manufacturing process to help productivity
and reduce the business reduction.

(b) Cost-Benefit Analysis of Loss Prevention - It is really
difficult to compute the true cost of fire. The cost of fire
loss prevention measures, such as restricted use of
cheaper, poor quality combustible building products,
additional means of escape staircases and subdivision into
compartments.

Such measures have to be really effective in case of a
loss. They are of no use if there is no chance of a fire.

The increased expenses on fire prevention measures is
supposed to reduce fire losses, but it has to be checked
carefully to see whether the additional cost of safety

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