Page 56 - EBOOK RISK MANAGEMENT

6.2 Property Risk

The term “property risk” refers to risk events that specifically impact an organization’s

facilities and other physical infrastructure. Risk events such as fires, adverse weather

conditions, and terrorist attacks all fall into the category of property risk. In addition
to damaging and destroying physical property, property risk events also have the

potential to create stoppages in business operations and material financial losses.

Potential Loss
 Property loss

Risk Management Technique
 Purchase property insurance to cover the loss incurred

 Make sure all the doors locked properly before leaving the premise
 Keep the property in the locked safe or strong room to avoid the theft

risk

 Installing CCTV and alarm warning systems to alert peoples about the
theft and reduce the casualty loss

6.3 Liability Risk

Liability risk is the risk that may involve a third party who might held responsible for

certain types of losses and can be sued for bodily injury or other damages. There
are many different liability risks that a business may be exposed to such as product

liability risks, professional indemnity risks, and many more.

Potential Loss

 Death
 Injury

 Damage to property

Risk Management Techniques

 Review Customer Feedback
 Transfer Risk Through Management of Suppliers

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