Page 166 - RISK Management IC 86

Risk Management

ensuing losses. Describe the measures which may
be employed to achieve risk reduction.

Ans. Risk reduction measures have been classified by various
ways. They are
(i) preventive - eliminating the cause of loss. The
preventive measure, directed and reducing the
probability of a loss occurrence.
(ii) protective or quasi-preventive.
(iii) minimizing to limit loss and
(iv) salvaging.

Some measures are concerned with reducing the
probability of loss of occurring whereas the others are
concerned with limiting the size of loss.

Some examples of loss probability reducing measures are
: fitting safety guards to dangerous machines, removal of
obstacles, separation of pedestrian and vehicular traffic,
etc.

Some examples of loss severity reducing measures are :
installation of sprinkler systems and smoke vents,
provision of first-aid facilities, building firewalls and doors,
etc.

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