Risk control

1. 2.0 Risk Control
Risk control techniques are used to minimise the organisation’s risk of loss. Klinik Zalfah
is a family-centre healthcare that serves the community. Thus, risk control measures play a
vital role to ensure the safety of the patients and the staffs besides safeguarding the assets in
the company. There are various risk control techniques that can be implemented by an
organisation which includes risk avoidance, risk reduction, segregation of exposure units and
contractual transfer for risk control.
2.1 Risk Avoidance
Klinik Zalfah made a decision to eliminate an existing loss exposure by not engaging in
any risky surgical procedures such as plastic surgery, circumcision procedures, Those
surgical procedures, if not properly been carried out, it will lead to potential side effects
which may cause severe injuries to the patient. Such injuries will result in large potential
liability claims against Klinik Zalfah. However, the decision of not to engage in those risky
surgical procedures makes Klinik Zalfah loss the opportunity of getting the business activities
and has to forgo all the potential benefit and profit from it.
2.2 Risk Reduction
Risk reduction techniques are used to minimise the risk which includes two approaches;
loss prevention and loss control.
2.2.1 Fire Loss Prevention and Control
In terms of loss prevention measures, Klinik Zalfah implements a fire safety measures
in which it removes two elements that can cause a fire. Basically, a fire will only occur if the
three elements (fuel,oxygen and an ignition source) are present together. Klinik Zalfah
removes the element of fuel and ignition source in its premises. The staffs are strictly
prohibited from smoking in the premises as it can cause a fire and endanger other people’s
health. Klinik Zalfah also provides several fire extinguishers in its building and always
monitors its electrical wiring to prevent electrical fires.

2. Unfortunately, Klinik Zalfah does not implements any loss control measures due to
the facts that it does not installed any sprinkler system in the building that will help to
extinguish the fire and reduce the fire damage to the building.
2.2.2 Loss Prevention and Control against Theft Against
In an organization, assets are the most important resource to make sure the daily
business operations run smoothly. Thus, it is crucial for an organization to have security to
protect its assets from all types of harm or crimes. Theft is defined as the unlawful taking of
property belonging to others with the intention of depriving the owner of the possession of
property. It encompasses all forms of stealing such as robbery, burglary, sneaky theft and
fraud. Klinik Zalfah has quite adequate measures of loss prevention against burglary. Klinik
Zalfah had installed gates and good locks to secure its building. Burglary is an unlawful
removal of property from a building in consequent of forcible entry into the building.
However, such safety measures merely just delay the entrance of a burglar and do not
guarantee that a burglar will not occur. Klinik Zalfah also had installed several closed-circuit
television (CCTV) systems in catch criminals in the act. The installation of CCTV facilitates
Klinik Zalfah in two ways. Firstly, it helps the identification and conviction of criminals after
the offences have been committed. Secondly, it will act as a deterrent by increasing the
probability of identification and conviction, thus discouraging the potential criminals.

3. 2.2.3 Loss Prevention against Embezzlement and Fraud of Employees
Employees are one of the most important assets in an organization. Without them,
company wouldn’t be able to continue its business smoothly. Despite that, employees can
turn from an asset into enemies when they commit fraud and embezzlement. An organization
suffer much larger financial losses caused by dishonest employees which is known as white-
collar crime than through acts committed against them by robbers, burglars and other violent
criminals. The most common form of employee theft is embezzlement and fraud involving
money and other property of the organisation.
There are several measures taken by Klinik Zalfah to control embezzlement and fraud
among its employees which involves accounting controls, access controls, personal
screening, and separation of duties.
2.2.3.1 Accounting controls
Klinik Zalfah use accounting controls to keep track of cash flows and detect any
improprieties which includes supervision and observation. The manager notices that one of
the clerk’s registers is out of balance. Looking through the register information, he sees that
the clerk charged the wrong amount of money to the customer. Instead of charging RM97.00
for medical expense, the clerk charged RM79.00. At first, he thought that it was not an
intentional error. But a few weeks later, the manager noticed a pattern of the same mistake
made by the same clerk. Upon investigation, he realizes that the clerk had done an intended
fraudulent activity.
2.2.3.2 Access Controls
Klinik Zalfah has a special safety box that can only be accessed by the owner, Dr
Ahmad Sabri. It reduces the property thefts which includes money, confidential documents
and company’s secrets. Authority to sign cheques, purchase orders and contracts will only be
given to selected employees. Klinik Zalfah had a lot of suppliers to supply its medical
products. The contracts arrangements will be handled by the owner, Dr. Ahmad Sabri. Once
the contract had been made, the manager, Encik Riza will issue the cheques which then will
be signed by Dr. Zalfah.
(letak gambar safety box)

4. 2.2.3.3 Segregation of duties
In order to control employees’ theft, it is important to segregate the duties involved in
an organisation. Proper separation of duties makes it difficult for any one employee to steal
without cooperation of other employee. In Klinik Zalfah, Nurzita will maintain all the
medical stocks records while Nurhidayati will maintain the physical stock checks. Klinik
Zalfah had a proper work flow that involves one person to another. This can be seen in the
procedure of making a purchase from the supplier. The contract with the supplier will be
signed by Dr. Ahmad Sabri, followed by the purchase order made by Pn. Nor Pisah. En. Riza
will then issue cheques which will then be signed by Dr. Zalfah.
(letak gambar ubat ubat kat rak)