Not all exposures and perils are created equal. This video shows how to set priorities based on probability, frequency, and severity of risks, so as to better control and finance them.
- If you've made the commitment to…identify your business exposures,…then it makes sense to do something with that information.…That's where the next step in the process…called analysis comes in.…While this might sound onerous,…it's not if you keep to the strategy…of one, two, three.…There are three areas for you to focus on…when it comes to analyzing your risk exposures.…They are frequency, severity, and probability.…
Frequency is the analysis of how often…something bad can happen to you.…For example, if you own a restaurant,…you're assured that over the course of a 12 month period,…you'll have a frequency of slips and falls.…This is normal for any operation with heavy foot traffic.…The analysis here is to check your history…of slips and falls and determine what a normal amount…over the course of a year is.…You can then determine the cost for every fall.…
Factors in that cost include…the time taken by staff to deal with it,…medical expenses, and stoppage of operations,…and financial impact for that day.…Now not everyone owns a restaurant,…
- Explain the process of identifying exposures.
- Cite examples of transferring risk.
- Name the tools used for implementation and monitoring risks.
- Define “organizational amnesia” and explain how to prevent it.
- Describe security concerns an organization may have and explain the cybersecurity tools that may be used to mitigate them.
- Identify the benefits of an employee handbook for mitigating risks.
- Explain the various parts of an insurance policy.
- Summarize the importance of a business continuity plan and describe the steps for creating one.