Risk Management 101

Tag: reduce insurance costs

  • 8 Non-Financing Risk Control Methods, #3 Reduction

    8 Non-Financing Risk Control Methods, #3 Reduction

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    We know to sparingly avoid risk and how to improve our prevention (frequency) effectiveness but what is reduction (severity) all about when not viewed in combination with prevention (frequency). Reduction by its very nature is the lowering of the impact by lowering the severity of the exposure.   Reduction is putting systems in place, such…

  • 8 Non-Financing Risk Control Methods – Prevention

    8 Non-Financing Risk Control Methods – Prevention

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    We know to not use the risk avoidance technique unless we absolutely have to. What does preventing a risk really mean – frequency reduction. We know, as a non-statistical rule of thumb, that a catastrophic loss risk will occur once, there will be 10 intermediate losses, 100 small losses, 1000 losses under the deductible/threshold (awareness)…