Reference no: EM132886622
Risk management includes a funding mechanism that stimulates investment in loss prevention and loss control measures to reduce the cost of risk. Funding may be obtained through a percentage of workers' compensation base accrual rates. Investing in loss prevention reduces claim frequency, which has a positive effect on severity and overall claim exposure. An appropriate tracking system documents losses or exposure prior to initiating the new program and, after a selected time, documents the effect of the program on losses or exposure.
Imagine this scenario: You're writing a blog post for a blog site whose readers are heads of risk management departments.
Select 1 loss prevention initiative from your own experience or from peer-reviewed scholarly sources.
-Summarize the background, goals, and needs of your selected loss prevention initiative.
-Identify the loss prevention initiative's:
-Primary and secondary funding sources
-Funding constraints for each source
-Describe a plan to structure these funding sources to meet the initiative's goals.
-Specify the potential internal ramifications that may arise when implementing the loss prevention initiative and your plan for managing the ramifications.