Risk Control Techniques

The specfic strategy our HCRM specialists deploy will vary on a case-by-case basis. However, most fall into one or more of the following categories.

Prevention | Avoidance | Reduction | Transfer | Segregation

Prevention

Reduces the probability or frequency of a particular loss, but does not completely eliminate the possibility of a loss. Some examples include:

• Health and Safety programs
• Retention strategies for key personnel
• Stringent screening & hiring protocols
• Effective policy development

Avoidance

Decision not to create a particular loss exposure or eliminate completely any existing exposure. This is the most extreme technique. Remember, avoidance may cause new loss exposures. Some examples include:

• Effective hiring practices
• Anti-Nepotism policies
• Removing your staff entirely from a dangerous location or industry

Reduction

Reduces the severity of losses that do occur. Some examples include:

• Active WSIB claims management to reduce costs
• Performance improvement programs
• Effectively executed terminations

Transfer

Contract that transfers to another legal entity the legal responsibility for performing a particular activity and for bearing specified types of loss that might result from that activity. Some examples include:

• Outsource a particular function to another company
• Hire contract or "temp" workers

Segregation

This technique encompasses various options, including Diversification (spreading risk across numerous areas or individuals), Duplication (complete reproduction of a standby asset as reserve), or Separation (division of a single asset into two or more assets). Some examples include:

• Cross-training of essential functions
• Succession planning
• Job rotation
• Mentorship
• Documentation of key processes