Assignment task:
You have spent this week exploring types of risks, the effects risk has on society and institutions, as well as the characteristics and benefits of insurance. Your assignment for this week asks you to draw these insights together through an analysis of the risk management process. Consider the following scenario:
Scaffold Equipment manufactures and sells scaffolds and ladders that are used by a variety of organizations including hospitals, long-term care facilities, and construction firms. The products are sold directly to independent retailers in the United States. The company's risk manager knows that the company could be sued if a scaffold or ladder is defective, and someone is injured. Because the cost of products liability insurance has increased, the risk manager is considering other techniques to treat the company's loss exposures.
For this assignment, your analysis of this scenario should include a description of the four steps in the risk management process as well as a discussion of four specific risk management techniques:
- Avoidance
- Loss Prevention
- Loss Reduction
- Noninsurance Transfers
For each of the risk management techniques listed above, recommend a specific action using that technique that might help Scaffold Equipment address their products liability exposure. Review the Active Risk Control Toolkit from ASHRM to help develop your analysis and recommendations. The toolkit can provide industry-standard and useful questions to help guide your analysis.
Your analysis must include an introduction, discussion of the risk management process, description of the risk management techniques, actions for using those techniques, and a conclusion. You must also include a chart (using Word or Excel) you created that outlines the process and techniques.