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3.4 Tools Of Risks Identification
To reduce the possibility of overlooking important risk, most risk manager use some
systematic approach to the problem of risk identification. There are various tools
can be used to identify potential losses:
3.4.1 Physical Inspections
Physical inspections help to prevent incidents, injuries and illnesses. It also can help
to identify and record hazards for management to do corrective action, plan,
conduct, report monitor such physical inspections. Some loss exposures cannot be
detected through a picture.
Figure 3.6 Physical Inspection
3.4.2 Flowcharts
A flowchart is a detailed form of risk identification than inspections. It is a type of
diagram that represents a workflow or process. An organizations need flowcharts
to show process and movements of the business such as production flow, service
flow and money flow. Any corrective actions can be taken before the businesses
exposed to any loss exposures. Below is an example of flowcharts on credit
approval process.
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