Operational Fire Safety & Security Risk Management – Guide For Risk Assessment, Loss & Financial Planning.
Despite the fact that money, building, and equipment, materials, and personnel all are needed to protect life in any community, the degree to which we control the adverse impact upon resources directly affects the service we can provide. It is an impact that that loss control can affect positively.
We can estimate the organizational dreams, such as equipment replacement and personnel turnover, but accidental and equipment breakdowns cannot be estimated. Yet they have a great impact on the financial management of a fire & safety department. In today’s inflammatory climate, the money you waste on accidental losses not only keeps you from upgrading facilities & equipment. It can almost keep you from getting the most out of what you have, everyone should work towards preventing losses; administrators and line officers must provide leadership and the knowledge to control losses:
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*A suspicious fire guts the entire record-keeping area of your municipal building, resulting in a total loss of all municipal records. Subsequent Investigation reveals forcible entry through an unprotected first-floor window, probably by juveniles.
RESULTANT LOSS: All records and vital documents of the organization including personnel files, historical documents, and official records of the municipality(Charters, minutes, ordinance)are destroyed with few or no duplicates, a tremendous interruption of municipal business occurs.
*A fire destroyed much of the equipment used by the Fire department. The suspected fire cause is the improper storage of flammable liquids near a portable meeting unit.
RESULTANT LOSS: The entire workforce of the fire department, is handicapped by the destruction of equipment. replacing the destroyed equipment will take several years, at a substantial cost to the budget.
RISK MANAGEMENT
Dealing with limited resources can be done effectively through risk management. This relates directly to funds expended. The risk management decision-making process involves first the establishment of how you wish to control your risk and expend your funds. It then becomes essential to identify and analyze your loss exposures, including both their types and significance.
It is necessary to develop some risk management alternatives including such risk control techniques as avoidance, loss prevention, loss reduction, separation or diversification& non-Insurance transfer as well as risk financing techniques.
THE BOTTOM LINE
Whether this is termed risk management, financial planning & control, loss prevention, or something else, the bottom line is that management standpoint forces you to try and control expenses, Improve production& eliminate adverse situations.
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LOSS FREQUENCY AND SEVERITY
Loss frequency and severity affect the rate. for example;
*If an employer furnishes a safer place to work, the rate may be lower than for a risk where hazardous activity exists, no loss control is provided and injuries are plentiful.
*Similarly, a fire insurance rate is affected by such factors as fire protection, building construction, and type of occupancy.
*Severity is also measured by the number of exposure units therefore, better protection, active loss and effective risk management can help control your resources.
Consequently, you need to know your loss history, your loss potential, and the impact these have on your resources. Then you can begin to develop an effective loss control program by weighing accident prevention versus loss control and applying cost-effective loss control management. The success of loss control effort requires the full and earnest cooperation of each employee and administrator.
When accidental damage or personal injury occurs, you should conduct a thorough investigation. Find out if the cause of the accident could have been controlled. Experience shows that conditions that cause accidents also cause waste and Inefficiency, speeding on vehicle part, this not only increases maintenance costs and accelerates depreciation on equipment, but also can cause personal injuries.
LOSS CONTROL MAKES A DIFFERENCE
Good loss control and risk management techniques can have a positive impact on all losses. Managing risks provides a way of controlling losses and expenses. It can make your limited resources of manpower, materials, and equipment more effective and if your resources are more effective, the organization you serve is safer.
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