Our Risk Inspection service

Our service in risk assessment currently focuses on Industrial and Property Risks, including Building, Plant & Machinery, Stocks, and Construction. We encourage our client to also read our ‘Template’ report to gain a better understanding of our service.

While our Template Report is the presentation of our regular service, we base our service on Risk Management approach which focuses its process on six steps as follow:

  • Identifying loss exposures
  • Analyzing loss exposures
  • Examining the feasibility of risk management techniques
  • Selecting the appropriate risk management techniques
  • Implementing the selected risk management techniques
  • Monitoring results and revising the risk management program


Identifying loss exposures

In this section, we have excellent capabilities on Manufacturing, Pulp & Paper, Mining, Energy & Power Plant, Petrochemical, and Telecommunication.

While the Property Loss Exposure is normally covered in the existing insurance coverage for the aforementioned occupancies, we are prepared to present analysis on Liability, Personnel, and Net Income Loss Exposure.

The methods in the identification process start from the risk assessment questionnaires. Our template report provides a general overview of the assessment questionnaires. We would then proceed to the loss histories analysis, financial statements, flowchart, and organizational chart. Personal inspection or site visit is required in the identification process.

Analyzing loss exposures

Provided a reasonable time to process, this section estimates the likely significance of possible losses. Together, identifying and analyzing loss exposures are the most important steps in risk management process, as only a properly identified and analyzed loss exposure can be appropriately and accordingly managed.

The dimensions in this section include:

  • Loss frequency: the number of losses (such as losses from fires, auto accidents, liability claims) within a specific period of time.
  • Loss severity: the amount of a loss for a specific occurrence. Normally, we deal with the Maximum Foreseeable Loss (MFL) and Estimated Maximum Loss in this section.
  • Timing: when losses occur and when loss payments are made.
  • Data credibility: the confidence that can be placed on available data to indicate future losses.

The departments within the organization that could be involved in preparing the analysis are as follow:

  • Safety: to gather preventive measures taken
  • Accounting: to provide historical cost information
  • Information System: to track organization loss exposure
  • Legal: to get advices on the specific liability claim
  • Human Resource: to identify the key employees
  • Marketing: to know the consumer expectation and current deficiency


Examining the feasibility of risk management techniques

This section elaborates on the following:

  • Risk Control, which focuses on the avoidance, loss prevention, loss reduction, separation, duplication, and diversification.
  • Risk Financing. We put greater emphasis on insurance protection as our foundation in writing our report. However, we also realize that transferring the risk could also mean indemnity agreement and hedging. If a specific occupancy provides a retention financing technique, on a special request we will also provide the analysis as well.

We normally implement the aforementioned principles in our report; however, we take this opportunity to state that the following are also provided based on particular requests:

  • Selecting the appropriate risk management techniques

Which include forecasting, financial considerations, and non-financial considerations.

  • Implementing the selected risk management techniques

Which include technical decisions and managerial decisions.

  • Monitoring results and revising the risk management program

Which include discussion on new loss exposures, increasing significance of existing loss exposures, and necessary revision of the existing risk management program according to the dynamic nature of risk exposure in organizations.

In short, the aforementioned six steps provide facts and findings, which could extend to analysis, reference, industry benchmark, safety standard, loss possibilities, financial impact, and sound recommendation to improve the quality of risk.

As implied, applying risk management process on a continual basis enables an organization to achieve its objectives, given that choices of risk management techniques must be continually reevaluated in light of changes in the following aspects:

  • The organization’s resources & activities and their resulting additional exposures to accidental losses
  • The relative cost of alternative risk management techniques
  • The organization’s legal requirement
  • The organization’s objectives