Page 165 - RISK Management IC 86

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be financially responsible for the consequence of their
actions. Sometimes even if there is no legal compulsion
there can be moral obligation.

(d) Threat Analysis and Event Analysis -An alternative
approach to the checklist is to compile a list of threats to
the business. For e.g, the threat of denying access to the
place of business. Denial of access to premises can arise
from many causes, e.g, warrant and regulations following
epidemic, road blocks, strike picketing, government orders
etc. the threats to the business in terms of both the severity
and duration of the interruption however varies.

Event Analysis is a technique for considering likely
events which could cause problems, then investigating
those causes and effects. The varying impact between
the cause and the effect is a function of the event. There
are many potential causes of an event. The effect of
different causes giving rise to the same event can be
different.

Q5. Risk reduction is concerned with achieving a
reduction in either the probability of a loss
producing event occurring or in the size of the

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