SEVENTH INTERNATIONAL CONFERENCE ON INSURANCE F I C C I INDUSTRIAL RISK MANAGEMENT

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SEVENTH INTERNATIONAL CONFERENCE ON INSURANCEF
I C C I INDUSTRIAL RISK MANAGEMENT
P.Chandrasekar_at_unilever.com Sr. Manager Insurance
and Risk Management HINDUSTAN LEVER LIMITED
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WHAT IS RISK MANAGEMENT ?

• A DISCIPLINE FOR LIVING WITH UNCERTAINTY
  

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WHY RISK MANAGEMENT ?

• SECURITY IS MOSTLY A SUPERSTITION.
• It does not exist in Nature nor do the children
  of man as a whole experience it. Avoiding danger
  is no safer in the long run than outright
  exposure
• HELEN KELLER

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RISK MANAGEMENT IS TEAM WORK
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ON EXCELLENCE
WE ARE WHAT WE REPEATEDLY DO

• EXCELLENCE THEN,

IS NOT AN ACT,
BUT A HABIT
ARISTOTLE
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INDUSTRIAL EXPOSURES

• CAPITAL
• ASSETS
• INTELLECTUAL PROPERTY
• OPPORTUNITIES
• STATUTORY ENVIRONMENT
• TECHNOLOGY
• COMPETITION

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• RISK MANAGEMENT PROCESS

IS THERE A RISK ?
YES
NO- NO ACTION
IDENTIFY QUANTIFY
IS IT SIGNIFICANT OR CAN IT BE SELF-INSURED
NO, IT IS SIGNIFICANT
IT CAN BE ACCEPTED
CAN IT BE PREVENTED?
NO ACTION
YES
NO
COST THEREOF ACCEPTABLE?
CAN IT BE AT LEAST MINIMISED?
YES
COST ACCEPTABLE ?
PROCEED TO SPEND AND INSTAL
NO
THE PREVENTIVE MACHINERY/
YES-INSTALL
METHODS
IS RESIDUAL RISK ACCEPTABLE?
NO - INSURE
YES
(CARRY OWN RISK)
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RISK MANAGEMENT STEPS

• RISK IDENTIFICATION
• RISK ANALYSIS - PROPERTY, LIABILITY, REVENUE,
  PERSONNEL
• RETAIN, REDUCE OR TRANSFER ?
• RISK FINANCE - INTERNAL OR EXTERNAL (CONTRACTUAL)
  
• DEVELOP POSITION PROGRAM
• MONITOR CONSTANTLY !
• UPDATED R M I S

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OPERATIONAL SCALE

• MICRO PERSPECTIVE
• MACRO PERSPECTIVE
• CORPORATE PERSPECTIVE
• INDUSTRY PERSPECTIVE
• NATIONAL PERSPECTIVE
• GLOBAL PERSPECTIVE

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THE RISK SPECTRUM

• PROJECT RISKS
• STORAGE RISKS
• ERECTION MAINTENANCE RISKS
• OPERATIONAL RISKS
• STORAGE RISKS
• TRANSPORTATION RISKS
• OUTSOURCING RISKS

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THE RISK SPECTRUM cont

• ENIRONMENTAL RISKS
• STATUTORY RISKS
• LEGAL RISKS
• HUMAN ELEMENT
• NETWORKING RISKS
• MARKET RISKS
• TIME FACTOR

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EMERGING EXPOSURES

• CORPORATE GOVERNANCE
• MOTHER EARTHS NATURE
• HUMAN NATURE
• CONVERGENCE OF SERVICES
• SHRINKING WORLD
• GLOBAL COMMUNICATION NETWORK

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ALVIN TOFFLER

• ILLITERATES ARE NO LONGER THOSE WHO CANNOT READ
  AND WRITE, BUT THOSE WHO CANNOT LEARN, UNLEARN
  RELEARN

QUICKLY CONSTANTLY