chapter 5 Flashcards
risk control activity
the strategy that enables us to control the risk
- reduce frequency or severity of loss
Avoidance
- stop engaging in activity that causes loss
-risk must be reduced to zero - not the most feasible idea because not everything in life can be avoided
legacy cost
costs you’ve been stuck with from the past
loss prevention
focused on frequency of loss
can only be done PRIOR to loss
example: training program
loss reduction
focused on severity of loss
can be done prior or after loss
pre- loss reduction
3 types:
detection
private
public
detection
example: smoke detector or alarm system
private loss reduction
standpipe
fire pump
sprinklers
building construction
standpipe
pipe system that runs throughout the building to fight fires
2 types: dry and wet
connected to hose
PRIVATE
fire pump
supplemental water supply
focused on pressure of water
common in high rise buildings
PRIVATE
sprinklers
activated by heat
each one is individually activated
most fires can be contained with 1 or 2
goal is to contain fire not put it out
private
loss reduction - public
fire hydrant within 1000 feet
fire department
post loss , loss reduction
salvage
legal defense
crisis management
rehab of injured worker
separation of exposure units
break up into smaller parts
limits the size of loss
ex: 2 medium suppliers over 1 large one
duplication of exposure units
key asset is replicated
not used until needed
spare key or backup data
cheap items only
