Hazard risks are defined as those risks that tend to arise from liability, property, and losses. Besides that, the hazard risks are often subject to being insured. Examples of hazard risks that will be discussed on in this article include legal risks, consequential losses, property and personnel hazards. Property risk occurs in a situation when a financial loss takes place in a real estate property or investment. It may arise from liability, partnership problems or other legal issues. On the contrary, legal risks arise due to the failure not to comply with the regulatory obligations. Further, personnel risks involve several losses that an organization could face such as the departure of the workers, death, injury or cases of disabilities (Ivanyos, & Sándor-Kriszt, 2016). Lastly, consequential losses tend to arise when a person is not able to use the business equipment. The process of risk management of the hazard risks listed above as per the ISO 31000 will be addressed in the next part of this paper.
In legal risks, the process of managing them would involve the creating of a framework that is in line with the objectives of the ISO-31000 (Florea, & Florea, 2016). The second step in the process of managing legal risks would be to identify the risks while recognizing both the potential and the real risks as well. The third phase would be to analyze the legal risks identified whereby in this process one tends to gain a deeper understanding of the risks involved. The fourth step would be to evaluate the risks, and the last step is to communicate and gain advice on how to deal with the legal risks identified.
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Contrary to that, property risks can be managed through a variety of process that includes conducting regular surveys that help in property analyses that help in pricing risks and insurance solutions as well (Luko, 2013). Reports on loss prevention are also another factor that helps in the risk management process of properties. The allegations of injury prevention contain the comprehension of advice regarding how loss prevention processes can be improved. In the construction projects of goods, the risk management processes include the investment negotiations that are frequently used during the process of investment. Lastly, improving the loss prevention helps in preventing injuries from occurring in property management.
The process of solving personnel risk management includes the involvement of a corporation in various commitments (Luko, 2013). The first commitment that could be taken into consideration includes the insurance coverage for the workers in an organization. For this step to be successful, one has to identify the various risk potential areas in an organization. Besides that, it is critical to address all the dangerous areas for the success of the business (Florea, & Florea, 2016). In addition to that, personnel risk management process could be solved by getting expertise that is familiar with the process of risk management that includes measuring, treatment, implementing, as well as, monitoring of the risks (Ivanyos, & Sándor-Kriszt, 2016). Moreover, they should also have the expertise of how to apply the various treatment options in the risks identified. Further, a contractual knowledge is relevant in identification and handling of risks in every personal contract of an employee. The agents deployed should have the ability to identify both the liability and the property risks that are in every personal contract. Therefore, this will help in ensuring that the risks are managed in a cost-effective manner and are also reduced for the success of a corporation (Florea, & Florea, 2016). Besides that, a company can opt to provide counsel to the workers on all the available policies of insurance. For instance, an employee should familiarize with the best health insurance option that can adequately cater for the medical risks for them to make the nest choice in insuring their health. In addition to that, the agents could be useful in giving the employees the right advice on the various policies that are purchased through their employers.
The first step to solving the consequential losses is the identification of the different types of losses which could be quite difficult. Losses can be categorized depending on the various facts and circumstances that are related to a particular contract. Consequential losses involved losses in the case of any investment. The most critical risk management processes of the significant losses are the ability to insure all the dangerous areas (Ivanyos, & Sándor-Kriszt, 2016). Insurance is helpful since it reduces losses since the insurance is likely to pay off a company that has insured most of its properties in the case of any loss. Similar to the ownership risks, consequential losses can be managed through a variety of process that includes conducting regular surveys that help in loss analyses that help in pricing risks and insurance solutions as well. Reports on loss prevention are also another factor that helps in the risk management process of consequential losses.
In conclusion, this paper focuses on hazard risks, in particular, property, legal, personal risks, as well as, the significant losses. Property risk occurs in a situation when a financial loss takes place in a real estate property or investment while legal risks occur due to the failure not to comply with the regulatory obligations. Besides that, personnel risks involve several losses that an organization could face such as the departure of the workers, death, injury or cases of disabilities while the consequential losses tend to arise when a person is not able to use the business equipment. Further, the paper has focused on the various risk management processes that could be of help in solving the risks mentioned above. The insurance of property and the health of the employees is an example of risk management process that could be helpful in addressing the hazard risks discussed.
References
Florea, R., & Florea, R. (2016). Internal Audit and Risk Management. ISO 31000 and ERM Approaches. Economy Transdisciplinarity Cognition , 19 (1), 72-77.
Ivanyos, J., & Sándor-Kriszt, É. (2016). Risk Management Measurement and Evaluation Methods Based on Performance Indicators. Public Finance Quarterly (0031-496X) , 61 (2), 265-281.
Luko, S. N. (2013). Risk Management Principles and Guidelines. Quality Engineering , 25 (4), 451-454. doi:10.1080/08982112.2013.814508
