1 / 11

Chapter 14 Loss Prevention Through Risk Management

Chapter 14 Loss Prevention Through Risk Management. Pure and Dynamic Risk. Pure risk: The potential for injury, damage or loss with no possible benefits. Dynamic risk: Risk with the potential for both benefits and losses. Risk Management.

bbelanger
Download Presentation

Chapter 14 Loss Prevention Through Risk Management

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Chapter 14Loss Prevention Through Risk Management

  2. Pure and Dynamic Risk • Pure risk: The potential for injury, damage or loss with no possible benefits. • Dynamic risk: Risk with the potential for both benefits and losses.

  3. Risk Management • Risk management is anticipating, recognizing and analyzing risks. • Risk management involves taking steps to reduce or prevent such risks and evaluating the results.

  4. A Systematic Approach to Risk Management • Preventing loss through risk management includes: • Risk analysis. • Policy formulation. • Specification of a protection plan. • Follow-up.

  5. Morality and Legality of Risk Management • Organizations that do not have a comprehensive risk management program in place leave themselves open to disgruntled employees and customers as well as to potential civil liability.

  6. Risk Analysis • Three factors to consider in risk analysis are: • (1) vulnerability. • (2) probability. • (3) criticality.

  7. A Security Survey • The security survey (audit) is a critical, objective, on-site analysis of the total security system. • The information needed for a security survey is obtained by observing and by talking to personnel.

  8. Alternatives for Handling Risk • Alternatives for handling risk include: • Risk elimination. • Risk reduction. • Risk spreading. • Risk transfer. • Risk acceptance.

  9. Schedule for Evaluating the Security System • Each component of the security system should be periodically evaluated and changes made as needed.

  10. Summary Questions • What is the difference between pure and dynamic risk? • What is risk management? • What is included in a systematic approach to preventing loss through risk management? • What is the moral and legal responsibility of risk management?

  11. Summary Questions • What 3 factors are considered in risk analysis? • What is a security survey? • How is the information for a security survey obtained? • What alternatives exist for handling risks? • When should components of the security system be evaluated?

More Related