Page 272 - RISK Management IC 86

Management and risk management, common characteristics :
Because risk management is a form of management it, like all
management : (i) is directed toward the goals of the organization, (ii)
requires the making and implementing of decisions, and (iii) is
performed through the planning, organizing, directing and controlling
of the efforts of others.

Risk Management Association of India, Calcutta :
A professional Institute engaged in (i) promoting techniques or risk
management (ii) promoting the risk management profession in India
and to do all things necessary for the same (iii) coordinating the
activities of the Institute with those of the Chambers of commerce,
Insurance companies, Loss Prevention Association of India and other
safety organizations for promotion of safety and risk management
movement among the industrial and trading community (iv) arranging
safety classes, training programmes, publishing literature on risk
management and safety programmes and (v) creating awareness
among the public about safety and to insure in them the concept of
risk management in all activities.

Risk management consultant :
Independent persons who offer risk management advice to their
clients. Unlike brokers or agents they do not receive any commissions
from insurers for business placed with those insurers.

Risk management, as a decision process :
Once an organization’s Sr. Management has declared minimizing the
adverse effect of accidental losses to be a goal, one logical procedure
for achieving this goal is to (i) identify and analyze exposures which
may lead to accidental losses : (ii) formulate feasible risk management
alternatives for dealing with these exposures ; (iii) select the
apparently best alternative techniques or combination of techniques ;
(iv) implement the chosen techniques ; (v) monitor the results ; and if
necessary (vi) modify the chosen techniques to adapt to changes in
loss exposures or to tolerable changes in the level of losses.

Risk Management, modified competitive bidding :
A process under which the risk manager invites producers and
insurers to suggest insurance coverages that will best meet the needs
of his firm subject to some broad directives and cost considerations.

Risk management, object :
According to Fayol : “The object of this (security activity) is to
safeguard property and persons against theft, fire and flood, to ward
off strikes and felonies and broadly all social disturbances or natural
disturbances likely to endanger the progress and even the life of the
business. It is the master’s eye, the watch dog of the one man
business, the police or the or the army in the case of the state. It is,

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