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Related Flashcards
Cards In This Set
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Loss prevention
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Reduces the frequency of a particular loss without avoiding it
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Loss reduction
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Reduces the severity of a particular event without avoiding it
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3 tactics that make losses potentially less serve and more predictable
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Separation, duplication, and diversification
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Separation
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Intent is to reduce the severity of an individual loss at a single location -isolates loss exposure from one another to minimize the adverse effect of a single loss -by creating multiple locations separation most likely increases loss frequency
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Duplication
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A risk control technique that uses backup spaces or copies of critical property information or capabilities and keeps them in reserve, reducing the severity of each loss and is less likely as seperation to increase loss frequency because the duplicated unit is kept in reserve and is not as exposed to loss as in the primary unit -are not part of an organization's daily working resources -likely to reduce the average expected annual loss from a given loss exposure because it reduces loss severity without increasing loss frequency significantly
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Diversification
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A risk control technique that spreads loss exposures over numerous projects products markets or regions -usually applied to business risks rather than to hazards -create diversification of loss exposures when they provide a variety of products and services that are used by a range of customers
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Common risk control goals are the following
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-implement effective and efficient risk control measures -comply with legal requirements -promote life safety -ensure business continuity
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Major advantage of using cash flow analysis fro selecting risk control measures is
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It provides the same basis of comparison for all value-maximizing decisions and thereby helps the organization achieve its value-maximization goal
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Commercial Property Underwrites use COPE meaning
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Construction, Occupancy, Protection, and External Exposures
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Three risks control techniques can be used to control liability losses they are
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1) avoid the activity that creates the liability loss exposure 2) decrease the likelihood of the losses occuring (loss prevention) 3) if a loss does occur minimize ts effect on the organization (loss reduction)
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Most common loss prevention measure is to
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Control hazards (conditions that increase loss frequency or severity) limiting the number or magnitude of hazards surrounding loss exposure can prevent losses from occuring
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Big data
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Sets of data that are too large to be gathered and analyzed by traditional methods
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Wearables
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Sense monitor report and analyze workers health or wellbeing and their surrounding environment
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Drones
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Ideal for assessing conditions or risks in dangerous or unknown areas
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Sensors
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Measure respond to and produce data for monitored hazards or changing environmental conditions
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