INSURANCE RISK-MANAGEMENT.
Risk Management in terms of the handling of risk is as old as life itself. Man has always been involved in taking risks and subsequent decisions related to risk management.
Risk Management has developed out of insurance thanks to the insurance managers in the USA during the years after WWII. They came to realise that there was more to be gained from spending money on avoiding and reducing risks and on preventing and reducing loss compared to merely buying insurance.
As you know insurance risk-management is a discipline to deal with uncertainty. Riskmanagement being another element of our services, aims is to ascertain & reduce the potential of physical hazard present in the various sections of any particular work-place. The process involves identification & control of such elements. This is possible after making a comprehensive inspection of the work-place, the next step is to DESIGN & ADOPT suitable measure to reduce the probability of occurrence & their impact with out disturbing the efficiency of the work-place plus selection of appropriate insurance cover & effective risk-transfer.
Our unique and unlimited services in this context can help you access operational and business risks, assist you in presenting a clear course of action to senior management, and provide the continuity of representation that has become critical in today's just in time environment. As with all our services, you will find yourself working with one of the most knowledgeable professional group in the industry, who bring proven expertise and tailored solutions to claims and insurance issues - no matter how diverse or extensive.
Risk Management is an integral part of any organizations ability to, not only stay in business, but to grow. At 3D we understand that it is of vital importance that an organization protect its assets and with our Risk Management Programs an organization is able to protect their assets to ensure growth. More details about insurance risk-management is available on our website.
Identifying Loss Exposure.
'3D Enterprise' able to identify loss exposures by the development of a thorough working knowledge of how the organization operates. '3D Enterprise' supplements a physical inspection of the organization with tools that aid in the identification process, such as loss exposure surveys and operations flowcharts.
Physical Inspection.
A clear picture of an organization's loss exposure cannot be accomplished by simply filling out questionnaires and typing a report from an office. The most successful and straightforward method of identifying loss exposures is for '3D' to inspect the operation. However, a physical inspection alone will not identify all the exposures we use additional tools to uncover hidden exposures. Additional tools such as surveys, operational flowcharts, and interviews. At '3D' we employee the use of "Loss Exposure" surveys. '3D' has provided a document that lists many of the potential loss exposures that organizations, in general, may face. The actual "Loss Exposure" survey, that '3D' will use for a specific organization, will vary according to the type of organization.
Operations Flowchart.
In coordination with the "Loss Exposure" survey, 3D also uses an operations flowchart. This tool complements the survey and provides a clearer picture of loss exposures from certain operations and their connections and relations to other areas and department of an organization.
3D uses the operations flowchart for two distinct reasons
1) Business Interruption Exposures.
By charting the flow of operations, 3D can determine how a business interruption may occur following any physical damage to plant & machinery and ways to control and/or prevent such hazards.
2) Reveals Interrelationships and Interdependencies.
By charting the flow of the operations, 3D is able to reveal the interrelationships and interdependencies among all departments of your organization.
Analyzing Loss Exposure.
When 3D analyzes the loss exposures it involves measuring the financial impact of the potential loss to the organization. With the 3D analysis, this will give an organization the ability to assign priority to the most significant loss exposures.
In the analyses, 3D will:
1) Measure the frequency of the Loss
2) Measure the severity of the Loss, and
3) Show the impact of the Loss.
Once 3D has identified and analyzed the loss exposure an appropriate technique can be developed for treating the exposures. There are basically five possible techniques that 3D is able to initiate. Each organization is different and 3D may employee a combination of one or more of the following techniques:
1) Avoidance.
2) Non insurance Transfer.
3) Control.
4) Retention.
5) Insurance.
Implementing the Risk Management Program.
Once 3D has identified and analyzed the loss exposures and then developed a customized and treatment method design specifically for an organization, the process of implementing the Risk Management Program begins.
Through 3D programs an individual within the organization will be trained as a Risk Manager to help with the implementation. Depending upon the treatment program that was design for the organization, a coordinated effort between 3D and the organization's Risk Manager will allow the smooth introduction and implementation of the Risk Management Program.
3D will work with, and on the behalf of the organization during the entire Risk Management Program Installation to ensure a successful installation.
Monitoring the Risk Management Program.
In any effective Risk Management Program there must be goals and objectives that are to be met to be able to measure the successfulness of the program. 3D, in conjunction with the organization, will develops realistic standards that the Risk Management Program must meet.
3D programs all, not only meet the standards that are established, but exceed these standards to bring a challenging Risk Management Program to the organization.
3D and the Risk Management Program.
3D realizes that it is financially import to an organization that a successful Risk Management Program meet and maintain these following criteria:
1) Successfully developing an aggressive Loss Control Program.
2) The Loss Control Program does not exceed the cost of implementing such a program.
3) That the Loss Control Program remains within a preset annual budget.
4) That the Loss Control Program remain flexible enough to adapt to new problems.
