With an Example of “What are the RISKS FACED by the student in Bangalore? What Strategies can we adopt for risk management ?”

2. 1. IDENTIFICATION OF RISK
BASED ON THE PAST EXPERIENCES, POSSIBLE THREATS ( I.E. INSPECTION ) WE CAN IDENTIFY RISKS
A) PERSONAL RISK
• POLLUTION ON ROAD – HEALTH
• OVERCROWDING OF PASSENGERS IN PUBLIC BUS
• CHANCES OF ADDICTION TO DRUG, ALCOHOL ETC.
• RIOTS WITHIN THE COLLEGE AND OUTSIDE THE COLLEGE
• CHANCES OF DISABILITY BY THE NEGLIGENCE OF
AUTHORITIES. E.G. CONSTRUCTION WORK
• PROPER MEDICAL SUPPORT IN COLLEGE / SCHOOL
• PROPER USAGE AND DISPOSABLE OF CHEMICALS IN LABS
• DRINKING WATER
• FOOD IN CANTEEN
• MENTAL STRESS/ AGONY IN ACADEMICS
• FIRE ACCIDENT
• LACK OF PROPER SECURITY IN COLLEGE.
E.G. TERRORIST ENTERING SCHOOL OR COLLEGE

3. 1. IDENTIFICATION OF RISK
C) LIABILITY RISK
• IF WE ACCIDENTLY DAMAGE OTHERS PROPERTY
• IF ANY INJURIES HAPPENED TO OTHERS BECAUSE OF
NEGLIGENCE GENERALLY COLLEGE IS NOT
RESPONSIBLE
B) PROPERTY RISK
•DIRECT LOSS
• THEFT OF LAPTOPS, MOBILES, CAMERAS,
TABLETS, BOOKS
• PARKING LOSS
•INDIRECT LOSS
• RE-PURCHASE AFTER THEFT
D) RISK ARISING FROM FAILURE OF OTHERS
• FINE IMPOSED BY THE COLLEGE DUE TO THEFT /
DAMAGE OF ANY PROPERTY

4. 2. EVALUATION OF RISK
BASED ON FREQUENCY AND SEVERITY IT IS CLASSIFIED INTO THREE TYPES 1. CRITICAL 2. IMPORTANT 3. UNIMPORTANT
• CRITICAL: ALL EXPOSURES TO LOSS IN WHICH
THE POSSIBLE LOSSES ARE OF A MAGNITUDE
THAT WOULD RESULT IN BANKRUPTCY.
• IMPORTANT: THOSE EXPOSURES IN WHICH THE
POSSIBLE LOSSES WOULD NOT RESULT IN
BANKRUPTCY BUT WOULD REQUIRE THE FIRM
TO BORROW IN ORDER TO CONTINUE
OPERATIONS.
• UNIMPORTANT: THOSE EXPOSURES IN WHICH
THE POSSIBLE LOSSES COULD BE MET OUT OF
THE EXISTING ASSETS OR CURRENT INCOME OF
THE FIRM WITHOUT IMPOSING UNDUE
FINANCIAL STRAIN.
• ALL PERSONAL RISKS ARE THE ‘CRITICAL’ MAJORLY AS THE
MAGNITUDE IS VERY HIGH.
• ALL PROPERTY RISKS MAJORLY COMES UNDER ‘IMPORTANT’
BECAUSE THE MAGNITUDE IS MEDIUM.
• ALL LIABILITY RISKS BASED ON THE AMOUNT OF LIABILITY FALL IN
‘IMPORTANT’ (IF AMOUNT IS HIGH) AND ‘UNIMPORTANT’ (IF
AMOUNT IS LOW.)
• ALL LOSSES INCURRING BY RISK ARISING FROM THE FAILURE OF
OTHERS COMES UNDER ‘UNIMPORTANT’

5. 3. CONSIDERATION OF ALTERNATIVES & SELECTION OF
RISK TREATMENT DEVICE
RISK
→RISK AVOIDANCE
OVERCROWDING IN PUBLIC BUS
ADDICTION TO DRUGS AND ALCOHOL
RIOTS WITHIN THE COLLEGE AND OUTSIDE
THE COLLEGE
THEFT OF LAPTOP, MOBILES, BOOKS ETC.
CONTROL
→RISK REDUCTION
LOSS CONTROL- Frequency LOSS PREVENTION - Severity
• Drinking water
• Food in Canteen
• Fire accident
• Lack of proper security
• Proper medical support
• Chances of disability
because of negligence
• Drinking water
• Food in canteen
• Fire accident
• Lack of proper security

6. 3. CONSIDERATION OF ALTERNATIVES &
SELECTION OF RISK TREATMENT DEVICE
RISK FINANCING
→RISK RETENTION
• POLLUTION ON ROAD
• MENTAL STRESS/ AGONY IN ACADEMICS
• LACK OF PROPER SECURITY
• THEFT OF LAPTOPS, MOBILES, BOOKS ETC.
• PARKING LOSS
• ACCIDENTLY DAMAGING OTHERS PROPERTY
• IF ANY PHYSICAL DAMAGES HAPPENED TO OTHERS
BECAUSE OF US
• FINE IMPOSED BY THE COLLEGE DUE TO THEFT/
DAMAGE OF ANY PROPERTY

7. 3. CONSIDERATION OF ALTERNATIVES &
SELECTION OF RISK TREATMENT DEVICE
RISK FINANCING
→RISK TRANSFER
• CHANCES OF DISABILITY
• FIRE ACCIDENT
(THE ABOVE MENTIONED RISKS ARE TO INSURED BY THE MANAGEMENT ONLY)
GENERALLY INSURANCE COMPANIES GIVES ONLY TRAVEL INSURANCE TO STUDENTS

8. 4. IMPLEMENTATION
• THE DECISION IS MADE TO RETAIN A RISK. THIS MAY BE ACCOMPLISHED WITH OR WITHOUT A FUND
• IF THE PLAN IS TO INCLUDE THE ACCUMULATION OF A FUND, PROPER ADMINISTRATIVE PROCEDURE
MUST BE SET UP TO IMPLEMENT THE DECISION. IF LOSS PREVENTION IS SELECTED TO DEAL WITH A
PARTICULAR RISK, THE PROPER LOSS-PREVENTION PROGRAM MUST BE DESIGNED AND IMPLEMENTED.
• THE DECISION TO TRANSFER THE RISK THROUGH INSURANCE MUST BE FOLLOWED BY THE SELECTION
OF AN INSURER, NEGOTIATIONS

9. 5. REVIEW AND CONTROL
EVALUATION AND REVIEW MUST BE INCLUDED IN THE PROGRAM FOR TWO REASONS.
• FIRST, THE RISK MANAGEMENT PROCESS DOES NOT TAKE PLACE IN A VACUUM. THINGS CHANGE; NEW
RISKS ARISE AND OLD RISKS DISAPPEAR. THE TECHNIQUES THAT WERE APPROPRIATE LAST YEAR MAY
NOT BE THE MOST ADVISABLE THIS YEAR, AND CONSTANT ATTENTION IS REQUIRED.
• SECOND, MISTAKES ARE SOMETIMES MADE. EVALUATION AND REVIEW OF THE RISK MANAGEMENT
PROGRAM PERMITS THE RISK MANAGER TO REVIEW DECISIONS AND DISCOVER MISTAKES.

10. THANK YOU