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Zorluk: OrtaMethods of Handling Risk

Precision Machining Corp. recently updated its corporate risk management strategy to address various operational exposures. The management team implemented the following protocols:

- They completely halted the manufacturing of a high-friction industrial saw due to a history of severe employee injuries.
- They installed automated shut-off sensors on all remaining assembly lines to minimize equipment damage during power surges.
- They established a dedicated cash reserve of $25,000 to pay for any minor vehicle accidents involving their sales fleet out of pocket.
- They purchased a comprehensive commercial liability policy to cover potential catastrophic lawsuits.

Based on the fundamental methods of handling risk, which of the following statements accurately identify the risk management techniques used by the company? (Select all that apply.)

  1. Halting the manufacturing of the high-friction saw is an example of Risk Avoidance.Cevap
  2. Establishing a dedicated cash reserve for minor vehicle accidents is an example of Risk Retention.Cevap
  3. C
    Installing automated shut-off sensors on the assembly lines is an example of Risk Avoidance.
  4. D
    Purchasing a comprehensive commercial liability policy is an example of Risk Sharing.

Cevap

The correct statements are that halting the manufacturing of the saw demonstrates Risk Avoidance, and establishing a cash reserve demonstrates Risk Retention.
Halting production of a dangerous item completely removes the risk, perfectly illustrating Risk Avoidance. Setting aside a dedicated cash fund to pay for minor losses directly means the company is self-insuring, which is the definition of Risk Retention.

Adım Adım Çözüm

1
Analyze the action of halting the manufacturing of the high-friction saw.
This action completely eliminates the company's exposure to the injury hazard associated with the saw.
Eliminating a risk entirely by not engaging in the hazardous activity meets the definition of Risk Avoidance.
2
Analyze the action of establishing a dedicated cash reserve for minor accidents.
The company is choosing to bear the financial burden of these minor losses itself.
Keeping the financial responsibility for a loss (self-insuring) is the definition of Risk Retention.
3
Analyze the action of installing shut-off sensors.
The sensors mitigate damage but do not eliminate the possibility of a power surge occurring.
Taking steps to lessen the severity of a loss is Risk Reduction, meaning it cannot be Risk Avoidance.
4
Analyze the action of purchasing a commercial liability policy.
The financial consequences of catastrophic lawsuits are shifted to the insurance company.
Shifting the financial risk to a third party is Risk Transfer, not Risk Sharing.

Anahtar Kavram

The five principal methods of handling risk (STARR): Sharing, Transfer, Avoidance, Reduction, and Retention.
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Konular

Methods of Handling Risk

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