Print/Copy Mail Services Vice President FALoss control methods reduce loss and make them more predictable and manageable. Managing exposures seldom means avoiding them, it means finding out what can go wrong and deciding what you want to do before it happens.
Loss Exposure Equation
What is the Activity
What are the Risks
What could the losses be to your department
What is the liability to the State
Analyze Identified Loss exposures
Bad press or poor public opinion
Estimate the frequency, severity and likelihood
Which loss exposures should concern your department the most
Which exposure's do you want to do something about
Control losses
AUTO: All drivers required to take UO drivers training course(s) for the vehicle they will be driving
AUTO/PROPERTY: Give more attention to exposures that are the most likely and costly for your department
PREVENTIVE MEASURES: Transportation safety devices, Security system devices, etc.
AVOIDS & PREVENTION: Is the trip/activity necessary, are weather conditions considered
Review past loss records. Past losses can show you what may happen again, how often certain types of losses occur, whether losses are large or small or the types of losses that may be few in number but produce large dollar losses.
Remember: Prioritize the loss exposures and don't think that something is not a loss exposure because it has never happened before.
Monitor your Loss Control Plan. Your department must have goals and objectives that are to be met in order to measure the successfulness of the plan and develop realistic standards. Remain flexible enough to adapt to new problems. The risks you identify and the plans you develop are based on your department's mission, goals, and objectives.