Disciplines of RM >

 Loss & Incident Management

Every loss and incident within a company represents a learning opportunity, without which past mistakes are more likely to be repeated. This should reduce recurring losses, reducing operating costs and possibly insurance premiums.

Losses & Incident Management is considered by some as being the only real means of assessing the effectiveness of risk management. Spend on risk management should reduce losses. If an organisation does not record losses how can risk management be shown to be offering a return on investment?

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Benefits that Risk Management can bring to Loss and Incident Management:

• Early and reliable warning signs of a more systemic cause or risk and therefore the ability to tackle to cause.
• Centralized view allows the organisation to create more cost effective cross enterprise remedies.
• Enable the effectiveness of continuity and recovery plans to be assessed.
• Reduce reputational damage: early warnings of major incident can be more effectively managed and communicated.
• Increased customer loyalty as long as tied to a PMA culture to resolve the incident.
• Ability to assess what insurance policies are required globally, working with insurance brokers to reduce premiums based in reduced loss profile (managed by an effective ERM methodology).