Page 225 - RISK Management IC 86

The Insurance Times

Q1. Discuss the role of the following in loss
prevention and loss reduction program in a
corporate enterprise:
(a) Management education
(b) Training of employees

Ans. (a) Management education - often carelessness,
incompetence, or lack of technical knowledge can cause
a loss producing event. Similarly, the failure of an
individual or a group to respond to a loss situation in a
correct way increase the size of loss. Consequently,
education and training has a major role to play in loss
reduction programs:
(i) Risk control - the aim should be to create in
management an awareness of the risks to which the
organisation is exposed and of the ways in which
they can be controlled. The lead and risk control
must come from the top management, and all of
them should have an understanding and commitment
to the principle of total risk control. The
organisational structure and division of
responsibilities should be geared up accordingly.

(ii) At the planning stage - many of risk control should
be recognised in the initial planning stage of a new

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