Question

What are the principal limitation of physical inspecation used by risk manager?

Answer 1

Question:- What are the principal limitation of physical inspecation by risk manager ?

Answer:-

Risk Manager is a person responsible for the implementation of risk management process and for eliminating the risk to maximum extent. The risk manager has a vital role to play in supporting the board or other management, ensuring that there are eyes and ears across the organization and often that there is a lateral risk view taken of an idea or process. Using their skills of working with and bringing together people at all levels, the risk manager can ensure that the risk of unexpected loss is recognized, measured and managed.

The major functions of risk manager include protecting the firm against liquidity, market, credit, operational and legal risks. Protecting the financial industry from systematic risks is also the responsibility of a risk manager. Protecting the customer’s from fraud, forgery etc and protecting firm from adverse reputational risks are some of the major responsibilities of risk manager.

Follwing principal limitation of physical inspecation by risk manager

1- Security of all types of physical assets, operations, information, people and fraud

2- Preventing from Damage to assets including reputation from a variety of causes.

3- Protection of employees and visitors. Compliance with health and safety rules.

4- Management of the risk transfer program and of insurance portfolio

5- Business Continuity Planning is also the responsibility of risk manager.

6- Provide a methodology to identify and analyze the financial impact of loss to the organization, employees, the public, and the environment.

7- Examine the use of realistic and cost-effective opportunities to balance retention programs with commercial insurance.

8- Prepare risk management and insurance budgets and allocate claim costs and premiums to departments and divisions.

9- In cooperation with General Counsel, maintain control over the claims process to assure that claims are being settled fairly, consistently, and in the best interest of the entity.

10- Assist in the review of major contracts, proposed facilities, and/or new program activities for loss and insurance  implications.