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RISK CONTROL
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LEVELS AT WHICH CONTROL IMPLEMENTED

• Governmental
• Local authority
• Society
• Organisational
• Individual

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LOSS CONTROL

• Risk management should be involved with
  controlling losses
• They should take a leading role in planning and
  organizing activities directed at risk control
• Traditionally loss control divided
• Safety officer deals with safety
• Fire officer with fire risk
• Security of money is the treasurers problem
• Settling claims could be task of personnel
  officer or accountant
• Insurance is accountant or insurance officer

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HAZARD CONTROL

• Hazard is something which contributes towards the
  occurrence of an untoward event.
• Physical hazard
• Moral hazard
• mental
• e.g. allowing vehicles to be driven by a poorly
  trained personnel
• Morale hazard
• Accident prone

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FREQUENCY
SHIFT CONSEQUENCES
SEVERITY
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RISK CONTROL
Loss Control
Physical
Financial
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Physical loss control
Reduce
Prevent
Avoid
Contract
Segregation
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PHYSICAL LOSS CONTROL

• Avoid
• Do not enter into the risky situation
• Prevents all losses from the source
• Prevent
• Stops or reduces the probability of the event
  happening
• Refers to frequency
• Cannot prevent all losses
• Reduce
• Refers to severity
• There are both pre-loss and post loss measures
• Can also reduce probability

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PHYSICAL LOSS CONTROL II

• Segregation of exposure units
• Separation
• Divide existing assets into separate units.
• Duplication
• Reproduce the exposure units.
• Contract
• Include relevant terms and conditions in a
  contract.
• Make sure contract sets out agreement.
• Release clauses.

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RISK CONTROL
SAFETY THEORIES
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CHAIN CONCEPT
Source of loss
Hazard reduction
Minimize loss
Salvage
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Top Management support
Physical engineering approach
Human engineering approach
Guards on machines
Training
Supervision
Lighting
Morale
Good Housekeeping
Personnel acceptance
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DOMINO THEORY
Injury
Accident
Unsafe Act
Fault of Person
Social Environ ment
Heinrich
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DOMINO THEORY
Unsafe Act
Injury
Accident
Fault of Person
Social Environ ment
Heinrich
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HADDONS ENERGY TRANSFER APPROACH

• Haddon believed that accidents were a result of
  unplanned, often rapid release of energy
• Strategies are developed to manage the energy
  release
• This method can be applied to most occurrences

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Strategies
Illustration
1. Prevent marshalling in the first
place. 2. Reduce the amount of energy
which is marshalled from which accidents
may result. 3. Prevent the release of energy
which has built up. 4. Slow down the
release of energy 5. Separate, in
space or time, the energy which is released
from the object susceptible to injury.
Prevent workers from climbing to high places
from which they may fall. Reduce the number of
workers permitted to climb to high
places. Build guard rails to prevent falls from
high places. Reduce the height from which
employees must work slow down the rate at
which explosives are permitted to
burn. Prohibit entry to blasting areas during
blasting periods.
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Strategies
Illustration
6. Place a physical barrier between energy
source and the object susceptible to
injury. 7. Modify the contact surface by
rounding or softening the edges. 8. Strengthen
the object against damage by energy
release. 9. Mitigate the damage which
has not been prevented by previous eight
measures. 10. Use rehabilitation and
restorative techniques where damage has
occurred.
Require workers to use safety helmets, shoes or
goggles. Design cars with padded dashes build
toys without sharp edges. Require fireproof
building construction. Require workers to be
vaccinated against disease. Use fire alarm
systems, sprinkler systems, emergency medical
care facilities, storm-warning systems. Retrain
injured workmen with permanent disabilities.
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questions ???