Assignment: Insurance Case Study- Finance Loss Control
Loss control activities of a business focus on finding and implementing solutions to reduce the probability of loss (loss prevention) and/or reduce the actual amount of loss (loss reduction), and therefore reduce the total cost of risk to maximize firm profitability.
Loss control techniques have been widely used in environmental loss prevention, catastrophic loss prevention, and employee-related risk management. Many firms face loss exposures caused by using, storing, and transporting hazardous materials, caustic substances, gasses, acids, etc., and may have unique issues posed by deployment of "greener" vehicle fleets using CNG, LNG, and bio-fuel solutions. Catastrophic risks, such as earthquakes, tornado, hurricanes or big fire, also pose significant threat to the property safety and business continuation for firms. Employee behavior-related risks and product safety are also important concern of corporate risk management.
Lack of effective loss control (such as inadequate systems, inadequate standards, and inadequate compliance with safety standards) may cause significant damage to a firm, such as injury costs, property damage, liability damage, bad press, lower sales, loss of employee morale, so on and so forth, as British Petroleum (BP) or Toyota had suffered in the past.
In this project, select an S&P 500 company and analyze its loss control policies focusing on either environmental loss prevention, or catastrophic loss prevention, or employee-related risk management.
Your analysis shouldaddress the following questions in the least:
1) How likely the firm is subject to catastrophic losses?
2) Has the business suffered losses of the kind in the past?
3) What losses could be caused to the firm if a catastrophic event occurs?
A. Direct Property Loss
B. Indirect (or consequential) Property Loss
C. Liability Loss
D. Personnel Loss
E. Crime
F. Other Loss Exposures
4) What loss control activities has the firm implemented to reduce the loss?
A. E.g. For Property loss control, comment on Facility design and construction, Automatic Sprinkler Protection, Preventative maintenance, Equipment and Process controls and safeguards, Human Element programs, Pre-incident planning and Business continuity planning
B. Proactive Safety procedures vs. Reactive Safety & Recovery policies
Format your assignment according to the following formatting requirements:
i) The answer should be typed, using Times New Roman font (size 12), double spaced, with one-inch margins on all sides.
ii) The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
iii) Also include a reference page. The Citations and references must follow APA format. The reference page is not included in the required page length.