The purpose behind a risk management program is to identify hazards,
assess them to see what risk they pose, and then take steps to control
the risk – which involves either eliminating the hazards or minimizing
the harm they may cause. It may also involve regular ongoing monitoring
to ensure continued health and safety. Risk management and insurance are
not totally separate entities but combine to form a method to control
the losses that can occur in a business.
In terms of a business premises hazards are those things which have the
potential to cause injury to people on the property. This may include
poorly maintained steps or stairs, poor design of the workplace, uneven
floors, damaged floor coverings or mats, uneven walkways, potholes in
the car-parking area, and poor lighting. It is essential that management
take steps to make the property as safe as possible for workers and
visitors. This may involve not only property maintenance but also
improving the disaster-resistance of the building to make it less
vulnerable to fire, flood, earthquake or other peril.
Part of the risk management and insurance process is to purchase
insurance to “match” the risk involved. Risk management helps to reduce
the likelihood of injuries or harm, while insurance provides financial
protection if an injury should unfortunately occur.
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