Risk Management Process
The risk management process is a series of steps: 1. identifying
and analyzing loss exposures; 2. measuring loss exposures; 3.
selecting the technique or combination of techniques to be used
to handle each exposure; 4. implementing the techniques chosen;
and 5. monitoring the decisions made and making appropriate
changes.
There are several methods for risk management;
Risk Avoidance
Technique used to avoid taking on a risk altogether. It is
sometimes advised to avoid particular risks when the cost
of acquisition and maintaining them outweighs the benefits
they provide. For example, the danger attached to certain
kinds of equipment may make it non-viable to have the equipment
installed in a workplace.
 Risk
Control
Techniques or programs used to reduce the total amount of
physical damage, injury or loss should an event occur that
results in a fortuitous loss. They may be in the form of monitoring
and control processes or safer working procedures, or simply
by developing and implementing policies to control activity
or resource utilisation.
Risk Financing
Techniques or methods used to provide funds to pay for losses
due to fortuitous events.
 Risk
Transfer
A risk control technique that involves the contractual shifting
of a pure risk from one party to another. An example is the
purchase of an insurance policy, by which a specified risk
of loss is passed from the policyholder to the insurer. Other
examples are the hold harmless clauses in many contracts,
contractual requirements to provide insurance coverage for
another party's benefit, and reinsurance.
For more information, please contact:
Khun Wasana Sombuthom
Tel. 01-825-7528 E-mail Wasana@aprc-consultants.com
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Inland
Transit & Marine
Cargo Insurance
