risk identification

1. RISK MANAGEMENT DECISION
Kashif Abbass

2.  Identify loss exposures
 Measure and analyze the loss exposure
 Select the appropriate combination of techniques for treating the loss exposures.
 Implement and monitor the risk management program

3. Risk management policy statement
- outlines the risk management objectives of the firm
- treatment of loss exposures
- educates top-level executives in regards to the risk management process
- establishes the importance, role, and authority of the risk managers
- provides standards for judging the risk manager’s performance

4. Risk management manual
- details of the risk management program of the firm
- to be used for training managers, supervisors, and new employees.
- responsibilities, objectives, techniques
- includes a list of insurance policies, agent and broker contact information,
who to contact when a loss occurs, emergency contact numbers, and other
relevant information.

5. Cooperation with other departments
- Accounting
- Finance
- Marketing
- Operations
- Human resource
- Others

6.  To identify new risks as soon as possible
 To look for the risks that might be reduced and eliminated
 To find out the risks that have disappeared and no longer need coverage
 To have the opportunity to rectify mistakes when the mistakes are discovered.

7.  To determine whether the objectives are being attained or if corrective actions are
needed.
 Risk management costs, safety programs, and loss-prevention programs must be
carefully monitored.
 Lost records must be examined to detect any changes in frequency and severity.
 Retention and transfer decisions must be reviewed.
 Whether the firm’s overall risk management policies are being carried out
 Whether the risk manager is receiving cooperation from other department.