You have spent this week exploring types of risks, the effects risk has on society and institutions, as well as the characteristics and benefits of insurance. Your assignment for this week asks you to draw these insights together through an analysis of the risk management process. Consider the following scenario:
Scaffold Equipment manufactures and sells scaffolds and ladders that are used by a variety of organizations including hospitals, long-term care facilities, and construction firms. The products are sold directly to independent retailers in the United States. The company’s risk manager knows that the company could be sued if a scaffold or ladder is defective, and someone is injured. Because the cost of products liability insurance has increased, the risk manager is considering other techniques to treat the company’s loss exposures.
For this assignment, your analysis of this scenario should include a description of the four steps in the risk management process as well as a discussion of four specific risk management techniques:
- Avoidance
- Loss Prevention
- Loss Reduction
- Noninsurance Transfers
For each of the risk management techniques listed above, recommend a specific action using that technique that might help Scaffold Equipment address their products liability exposure. Review the Active Risk Control Toolkitfrom ASHRM to help develop your analysis and recommendations. The toolkit can provide industry-standard and useful questions to help guide your analysis.
Your analysis must include an introduction, discussion of the risk management process, description of the risk management techniques, actions for using those techniques, and a conclusion. You must also include a chart (using Word or Excel) you created that outlines the process and techniques.
Your submission must be a minimum of 1250 words, not including the title, reference, or chart pages. The chart should be in APA 7th edition style. Be sure to use a minimum of 4 references: 1 from the course textbook, 1 from the ASHRM website, and 2 additional of your choosing. Please use the APA 7th Essay Template available in the Supplementary Course Resources>>APA 7th Edition Resources section.
Question 2
The very presence of risk leads to unwanted social and economic effects, what your textbook classifies as ‘burdens,’ (p. 12). For this week’s discussion, begin by briefly explaining the 3 types of burdens outlined in your textbook. Next, select 2 of these burdens and find a contemporary example of each in the healthcare industry. For help choosing relevant examples, be sure to visit the Internet Resources listed at the end of Chapter 1 (p. 20).
Once you have selected your examples, discuss the following for each:
- How does this example qualify as one of the three burdens listed in your textbook?
- How does it affect society or specific organizations?
- What are two techniques that can manage this risk, and why?
