Page 273 - RISK Management IC 86

generally speaking, all measures conferring security upon the
undertaking and requisite peace of mind upon the personnel”

Risk management objectives :
The post-loss and pre-loss objectives that a business or family wishes
to achieve through risk management.

Risk management, policy statement :
A statement of (i) the risk management objectives of business, and (ii)
the authority and responsibility of the risk manager.

Risk Management Policy Statement :
General Mills Inc.

Activities of the risk Management Department are influenced by the
company’s general insurance philosophy which can be summarised as
follows :

01. eliminate or reduce as far as practicable the conditions and
practices which cause insurable losses.

02. When risk cannot be eliminated or reduced to workable levels :

a) Purchase commercial insurance that will provide indemnity for
catastrophic losses.

b) Either insure or assume, whichever judgment indicates to be in the
Company’s best interest, those risks not considered to be of major
importance individually to the operating or financial position of the
Company.

But, in any event, to retain whatever portion of the risk for General
Mills account that premium reduction make economically attractive.

The Risk Management Department’s responsibility for implementing
this policy includes :

01. Assisting divisions and subsidiaries to design and operate fire
control and loss prevention programmes.

02. Reviewing new construction and facility alternation plans to assure
risk control features and insurance acceptability.

03. Developing insurance coverage policies and programs and keeping
them up-to-date to assure their effectiveness.

04. Negotiating and placing (of otherwise approving) all insurance
contracts and bonds to assure conformity with established programs.

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