Loss Control

Reduce losses through prevention - avoid... reduce... minimize

Loss control is all about reducing the frequency and/or severity of losses through preventive measures.

The most extreme form is to avoid activities that are hazardous.

• A toy store no longer carries a car seat since it was likely to injure infants
• A dry-cleaner changes the cleaning process to utilize a different chemical after the EPA bans the former chemical as hazardous

• A heavy equipment dealer can obtain cheaper land for the new repair shop and sales / office building a bit further from his city, but that area is subject to brush fires. Instead, they locate closer in on suburban land, near a fire station. Risk management has reduced risk, but not eliminated it completely.

Loss control further looks for ways to minimize risks. What else can our heavy equipment dealer do with the new facility?

• build with fire-resistant construction and materials to reduce the chance of fire spreading
• install smoke detectors, fire alarms and automatic extinguishing systems throughout the building to further reduce the severity and spread of fire.
• train all staff and develop procedures beyond minimum requirements in the proper handling and use of fuels, lubricants, welding supplies, solvents, etc. to minimize combustion, spillage and disposal risks

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Risk Management