Risk/Loss Prevention
As common sense dictates, preventing a problem from occurring in the first place is by far preferable, much less costly and far more beneficial than correcting the problem once it has occurred. Since we live in a world where losses will always occur, what better way to deal with this challenge than to prevent it where possible?
Fire remains the largest cause of property losses that effect businesses all over the world. Comprehensive loss studies have identified primary areas most affecting loss frequency and severity. These preventable losses, which are listed below, generate nearly 80% of all fire losses:
· Electrical Ignition
· Arson Fires
· Hazardous Process Fires
· Hot Work Fires
· Flammable Liquid Fires
· Smoking-Related Fires
· Housekeeping-Related Fires
The prevention of losses lowers your company’s business costs. Even small losses can impact a company’s productivity. By preventing a loss, you eliminate unplanned expenditures, you save the insurance deductible and you save intangibles not covered by insurance such as market share, customer loyalty, employees, company reputation and community support.
By identifying these critical preventable causes of fire, process hazards, other perils and accidental damage, you can, with our consultants, develop an action plan tailored to your exact needs. We can help you prioritise your efforts, take advantage of your strengths, and target your efforts in areas where you can achieve the greatest return for your unique business/facility.
Usually, a good, well organised and effective risk/loss prevention program is built over several years in collaboration with your risk consultant. You don’t need to spend a lot of money to get started. Fulfilling basic risk/loss prevention practices is simple and relatively inexpensive. In this way, you can build a sound foundation initially by addressing your basic needs, and then, where practical and desired, you can move on to a more sophisticated managed program.
Risk/Loss Control
Despite all risk/loss prevention efforts and active programs, not all losses are preventable. The potential for loss will always exist. However, the frequency, the severity and the effect of these unpreventable losses can be greatly reduced by the implementation of risk/loss control measures to complement your existing risk/loss prevention program. As in prevention, research and extensive loss studies have identified critical areas that help control the majority of these losses:
· Control through Automatic Protection- Automatic protection, especially in areas that pose a threat of rapid fire growth, gives you means to control or even extinguish a fire until the arrival of the fire brigade. Automatic sprinklers, and where appropriate fixed protection systems, provide an excellent means of controlling fire growth with minimal water and smoke damage. After all, most fires are extinguished with fewer than 10 sprinklers operating.
· Control through Construction- Construction can either limit or enhance fire spread depending on the type of building materials, fixing, installation and building methods, site/building location and layout. The right level of design of your building and its building materials to suit the occupancy and business operation can help control the severity of a fire loss.
· Control through Detection- Early detection of a problem allows you to respond quickly and effectively to limit the effect of the incident; hence, reducing the severity of the loss. Installing automatic detection or protection systems with appropriate alarm transmission will help you achieve this goal. They are especially important in areas that are concealed, difficult to access, unoccupied, or have special hazards.
· Control through Emergency Response- The importance of a rapid, educated response to an emergency cannot be overemphasized. A well trained, equipped and organised emergency response team would provide the first line of defence against an emergency at your facility. Their swift and effective response to a fire or other emergencies would help to contain fire growth or other incidents and minimise losses.
· Control through Exposure Protection- A fire that develops in a neighbouring property can pose a severe threat to your facility. Know your neighbour’s hazards and avoid them where possible; otherwise, protect your property against them. Not all exposures however come from the neighbours! Some of the most severe exposures that could threaten your entire operation may be present within your own facility. Also, exposure from natural hazards cannot be ignored. Know your hazards and exposures.
· Control through Fire Service- The fire brigade is your partner in fire control. Make sure they are familiar with your facility and its hazards. Adequate water supply must be available for fire fighting preferably through fire hydrants. Taking a partnership approach with your local fire service by collaborating and planning your emergency response can further enhance your chances of minimising a loss from fire and other hazards.
· Control through Occupancy Arrangement- Every business poses special risk/loss control challenges just by the nature of its operation. The arrangement of your occupancy (contents) within your facility is vital for controlling risks. By controlling hazards created by products processed and/or stored within the facility, you can minimise risk and losses.
We apply risk engineering in all our work so your organization can enjoy its many benefits.