Risk control

Risks, which were not identified and were not analyzed, cannot be steered

A key place in the entire Risk management process takes the risk price increase and - control. Products or economic activities given up with the goal of avoiding the associated risks then one speaks of risk avoidance. If risks are reduced by separating of enterprise functions, by regional or subject-related dispersion and/or by technical or organizational measures (e.g. comprehensive fire protection concept), then one speaks of risk reduction.

During the risk financing it concerns the question, to what extent risks are externalisiert (for example against the payment of an insurance premium) and/or which risks by the enterprise to be carried.

If the risk analysis is not accomplished insufficiently or, then a large portion of the total risk could be hidden with the “not identified risks”, so that also the use of the risk price increase and - control of smaller value is.

Risks avoid

If an enterprise decides to give or adapt determined activities up because of to high risk potentials, then one speaks of of risk avoidance.

Example: A manufacturer of electronic control units for passenger car does not decide to sell due to the high product liability risk in the future its products any longer on the US-American market.

Also the adjustment of the process cycles (for example in the production process) can contribute to the avoidance of risks. Example: In a lacquer route to a more pollution free lacquer finish procedure is changed over, in order to avoid so the environmental and image risk.

Another way risks to avoid is the misalignment of parts of the enterprise into other countries, in which for example the environmental legislation or industrial safety legislation is differently arranged. Here however possibly a higher image risk must be taken in purchase.

Risks decrease

An enterprise decides to laminate risks on third (however not insurers) to obtain within the enterprise a compensation of risks or by technical and organizational took someone’s measurements for damage to prevent speaks in such a way one of reduction of damage.

Risks can be externalisiert on other restaurant economics through:

Adhesion agreements and guarantee regulations in general trading conditions

Outsourcing of enterprise functions (for example Facility/buildings management, EDP functions, Factoring/demand introduction, logistics

Leasing contracts for production machines, EDP

Within a company risks can - if they are from each other independent - regionally, subject-related or personal are strewn. If the bespielsweise production of memory chips is distributed on three regionally from each other separated production units, then the risk of an operating interrupt or a total failure is reduced by fire.

Also by product diversification the market risk can be reduced (subject-related dispersion).

In particular the technical and organizational took someone’s measurements for Risikominderung within the ranges:

Fire protection

Environmental protection

Industrial safety and security (Health and Safety)

Protection of the infrastructure ranges (energy, water supply etc.)

Measures against third-party risks

Protection against procurement, development, production, sale and liability risks

Protection of the EDP processes

Protection against confidence damage (suppression, unfaithfulness, theft, fraud etc.)

Protection against computer abuse and information discharge (industrial espionage)

Protection against break-down theft

Factory protection force

Transport lock

should be particularly considered by enterprises.

Risks financiers

During the risk financing the question is treated, to what extent risks are externalisiert on third (in particular insurer) or by the enterprise are carried.

Risks laminate:

Risks are shifted by traditional insurance programs by the purchase by insurance protection on an insurer. In particular the security of existence-threatening risks is important. With middle risks helps cost use a view with the organization of the insurance program. In detail one differentiates the following insurance sections with respect to the framework from risk financing programs (partly based on the regulations of the VAG):

• Seeming vehicle all risks insurance on vehicles
• Aircraft all risks insurance on vehicles
• Sea, lake and riverboat trip all risks insurance on vehicles
• Merchandize
• Fire and elementary indemnity insurance
• Hail, frost and other damages to property
• Aircraft liability insurance, sea, lake and river shipping liability
• General liability
• Credit insurance
• Bail insurance
• Legal protection
• Interruption insurance
• (Accident insurance, health insurance)

Beside traditional insurance solutions lately concepts from the range “of the Risktransfer” (kind solutions) and/or “alternative risk financing” (ARF) gain alternative ever more significance.

Risks carry

Into exceptions (for example with multinational enterprises or with the public institutions) based on the law of the sizes if an internal compensation of risks reaches numbers, then self stretchers of risks an alternative to traditional insurance programs can be also. An appropriate Rücklagenbildung leads to smaller fluctuations relating to the balance. Many risks must be carried, because they are not insurable (for example disaster risk, business risk). The external self-insurance can be made by Captive Insurance Companies, pension funds or the local damage compensations.