Page 215 - RISK Management IC 86

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both within an organisation and outside the
organisation. The constraints on risk handling
choices may also change.

Therefore the risk management process is the
continuous, dynamic process which calls for
continuous action on two fronts: (i) results of
policies adopted need to be monitored and the
policies may need to be reviewed in the light of fresh
available information.(ii) policy need to be reviewed
at regular intervals the light of changing situations.

The techniques employed in the monitoring and
review process will be the same as those used in
the initial risk analysis, control and financing
processes. If results are to be monitored, then the
appropriate records must be maintained. Details
about loss producing events, costs of risks and
benefits of risk handling programs should be
collected and collated.

(d) Risk financing by borrowing - a large organisation
may choose to finance retained risks by borrowing
in any of the three possible ways :

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