BWRR3033: RISK MANAGEMENT

Rodziah Ahmad Risk Management Dept. SEFB, COB UUM Sintok, Kedah.

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Chapter 3: Risk Identification

Risk identification technique Analysis of loss exposure Physical asset loss exposure Human asset loss exposure Liability loss exposure

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Learning Objectives
Identify and briefly describe the major tools that

are used in risk identification process Explain why risk identification is generally considered to be the most difficult step in risk management process Identify physical asset, human asset and liability loss exposures Describe the basic legal liability rules and procedures, including the negligence law Introduce workplace safety regulations and other sources of employer liability

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Existing Risk

Objectives of Risk Identification

Risk Profile
New Risk

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Documented info
RISK IDENTIFICATION TECHNIQUE

Undocumented info
checklist

Site inspection Process flow chart

Organizational chart

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Direct loss

LOSS EXPOSURE

Physical asset Loss Exposure

Indirect loss

Human asset Loss Exposure

Compensatory damage

Liability Loss Exposure

Special damage General damage

Financial Asset Loss Exposure

Punitive damage

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Crime
BASIC LEGAL LIABILITY

Breach of contract Tort

Intentional Torts

Strict Liability

Negligence

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Basic Legal Liability

LEGAL WRONG is a violation of a persons legal

rights or a failure to perform a legal duty owed to a certain person or to society as a whole. Three broad classes of legal wrongs:
Crime (against society that is punishable by fines,

imprisonment or death) Breach of contract Tort (law allows a remedy in the form of money damages. Injured person (Plaintiff/ claimant) by the actions of another person (defendant / tortfeasor) can sue for damages.)

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Torts
Intentional Torts Intentional act that results in harm or injury to another person or damage to persons property. Example: assault, libel, slander Strict (absolute) liability Liability is imposed regardless of negligence or fault Example: occupational injury Negligence

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LAW OF NEGLIGENCE
ELEMENT OF NEGLIGENCE

Existence of a Legal Duty Failure to Perform That Duty Damage or Injury Proximate cause relationship

DEFENSES AGAINST NEGLIGENCE

Contributory negligence Comparative negligence Last clear chance rule Assumption of risk

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Occupational safety and health (OSH)

is a cross-disciplinary area concerned with protecting

the safety, health and welfare of people engaged in work or employment. The goals : to foster a safe and healthy work environment OSH may also protect co-workers, family members, employers, customers, and many others who might be affected by the workplace environment.

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OSH is important for : Moral obligations: protection of employee's lives and health. Legal reasons : relate to the preventative, punitive and compensatory effects of laws that protect worker's safety and health. Financial reasons: reduce employee injury and illness related costs, including medical care, sick leave and disability benefit costs

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Physical Hazards at Workplace

Falling at working space Usage of machines Confined spaces Noise

Heat stress
Electricity Vibrating machinery

Lighting