risk management through risk audit
TRANSCRIPT
APINS CONSULTANTS PRIVATE LIMITED.APINS CONSULTANTS PRIVATE LIMITED.RISK MANAGEMENT THROUGH RISK AUDIT
HEARTILY WELCOMES ALL DELEGATES TO THE GLOBAL STEEL 2011,16-18 January,2011
TAJ PALACE HOTEL, NEW DELHI, INDIA.
We at APINS take immense pleasure to present before you in brief our innovative and profitable way of Risk Management through Risk
Audit, a presentation specially prepared for 6th International Conference on Steel and Steel making raw materials.
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WHAT IS RISK MANAGEMENTWHAT IS RISK MANAGEMENT“It is a managerial function concerned with the protection of a Firm’s assets, earnings, legal liabilities and personnel against financial losses that may result from fortuitous events i.e. accidental happenings. Risk management is a new managerial discipline which has become a part of business management in many corporate firms”
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HOW RISK MANAGEMENT WORKS ?HOW RISK MANAGEMENT WORKS ?
WHAT IS RISK AUDIT?WHAT IS RISK AUDIT?
Risk Audit –Process that studies the culture, procedure and structure that all are directed towards the effective management of potential opportunity and adverse effects.
WHAT IS THE NEED FOR RISK AUDIT ?WHAT IS THE NEED FOR RISK AUDIT ?
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APPROACH OF RISK AUDIT APPROACH OF RISK AUDIT
TYPES OF RISK:TYPES OF RISK:
There are basically two categories of risk to deal with:
A) Dynamic or Speculative Risk : Speculative (dynamic) risk is a situation in which either profit OR loss is possible. Example: Betting
B) Pure or Static Risk : Pure (static) risk is a situation in which there are only the possibilities of loss or no loss, as oppose to loss or profit with speculative risk. Example: Premature Death, Occupational Disability, losses due to fire.
Risk
Pure/ StaticDynamic/ Speculative
Difference between the two RISKS:Difference between the two RISKS:
Dynamic Risk Pure Risk
Cannot be transferred to INSURERS. Can be transferred to INSURERS.
The LAW OF LARGE NUMBERS not applicable i.e the loss figures can not be predicted.
The LAW OF LARGE NUMBERS is applicable i.e the loss figures can be predicted.
Society may benefit from the risk. Society may never benefit from the Risk.
PURE RISK associated with the great economic and financial insecurity are: Personal RiskProperty RiskLiability Risk
Backward & Forward Integration
DUE TO THE ABOVE RISKS, BUSINESS
INTERRUPTION WILL CERTAINLY OCCUR
DUE TO THE ABOVE FOUR RISKS,
BUSINESS INTERRUPTION WILL CERTAINLY OCCUR
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RISKS EXPOSED DURING MANUFACTURING PROCESS
The basic raw material used are pig iron, sponge iron, iron ore fines/lumps & Coking Coal/Met Coke (LAMC) “Low Ash Metallurgical coke)
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WE DO NOT SELL INSURANCE POLICY
WE ARE PURELY CONSULTANTS
HOW CAN WE BE OF HELP ?HOW CAN WE BE OF HELP ?
RISK AUDIT RISK MANAGEMENT PLAN
Occupational health audit Safety& Environmental audit
RISK ACCOUNTING & FUNDING AND LOSS RECOVERY FROM
INSURER
Selection Of Insurer Analysis of all existing insurance policies in the market. Rationalize Risk/ Rate Code Providing guidelines for adequacy of Sum Insured. Scope of Discounts for reduction of insurance premium cost.
APINS PROVIDE COMPLETE RISK MANAGEMENT AS OUTSOURCE OF RISK MANAGEMENT & INSURANCE DEPARTMENT OF YOURS .
OTHERS
PREPARATION ON SITE AUDIT DISCUSSION EVALUATION& REPORTING
ATTACHED PRESENTATION
RISK RETENTION
TRANSFER OF RISK
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FOUR WAYS TO DEAL WITH THE RISK
RISK
REDUCTION OF RISK
AVOIDANCE OF RISK
RISK RETENTION/ SELF INSURANCE OR FUNDING
TRANSFER OF RISK
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HOW CAN WE TRANSFER THE RISK TO INSURANCE HOW CAN WE TRANSFER THE RISK TO INSURANCE COMPANIES/ POOL FUNDS LIKE P & I CLUBS ?COMPANIES/ POOL FUNDS LIKE P & I CLUBS ?
Risk like EXPLOSION, FIRE and SPOILAGE can be transferred through a Standard Fire and Special Allied Perils Policy. This policy provides coverage against material damage. For example: Building, Plant and Machinery and Stocks.
Risk like MACHINERY BREAKDOWN can be covered through a cover named as Machinery Breakdown Insurance. This policy provides coverage against the breakdown of the equipment.
RADIO ACTIVE CONTAMINATION risk can not be transferred to any insurance company. However, some safety measures can be suggested as per the products available in the market.
BUSINESS INTERRUPTION LOSS will certainly occur if in any case any of the above stated risk happens to take place. This risk can be transferred through a CONSEQUENTIAL LOSS POLICY.
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Instead of all the above mentioned covers we can opt for Instead of all the above mentioned covers we can opt for INDUSTRIAL ALL INDUSTRIAL ALL RISKS INSURANCE POLICY.RISKS INSURANCE POLICY.
ELIGIBILITY: As per the Normal Product available in the market.
All Industrial Risks (other than risks rate able under Petrochemical Tariff) having overall Sum Insured of Rs.50/100 crores and above in one or more locations in India shall be eligible for IAR policy.
IAR Policy
Section II: Business Interruption
Section I: Material Damage
Machinery Breakdown/Boiler
Explosion/Electronic Equipment
Insurance
BurglaryFire and All Special Perils
“IT COVERS ALL RISKS/PERILS OTHER THAN THOSE
SPECIFICALLY EXCLUDED.
DIFFERENCE BETWEEN DIFFERENCE BETWEEN STANDARD FIRE & SPECIAL PERILS POLICY STANDARD FIRE & SPECIAL PERILS POLICY
AND IAR POLICYAND IAR POLICY
S.No IAR POLICY STANDARD FIRE &SPECIAL PERILS POLICY
1. It is unnamed policy subject to EXCLUSIONS
It is a named Perils Policy.
2. It is issued on RIV basis only Whereas, SFSP can be issued on both RIV and Market Value policy.
3. Underinsurance can be waived of upto 15%
But here ,the condition of average is strictly applicable.
About Us About Us
Apins Consultant Private Limited is working from last three years and has developed an effective tool of Risk Audit to cater the Risk Management Industry. Apins has In-house dedicated team of more than 30 members of Experts including engineers, CA’s ,MBA’s & industry experience holders etc.
Apins has various verticals managed by the experts and experienced persons including an exclusive vertical for the Research on past losses and improvement of Risk Management Process.
The team at Apins is also supported by Valuable guidance of the senior insurance officers, carrying an experience of above 30 years.
Apins utilize expertise knowledge of person associated or linked to the industries as per the requirements.
Presently Apins offices are located at Jaipur, Kolkata & many places in Rajasthan, Apins has proposed offices in Gujarat, Delhi & other major cities.
Our Achievements
WE Conducted Risk Audit For
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Apins is ready to provide you detailed presentation at your door. Please write/
E-mail us.
Or
Please feel free to call us for subject discussions. Our representative will be happy to render the services to you.
Contact InformationContact InformationWe are available at:We are available at:
Head Office: Mrs. Ritu Mathur
309-IIIrd FloorDurga Business CenterOpposite Hotel Gangour
M I Road,Jaipur (Raj.) India Pin 302 001
Phone: +91-0141-3104548/0141-4028969
Fax: +91-0141-4027969E-mail: [email protected]
Corporate Off ice:
Mrs. Preeti Agarwal12 C, Diamond Heights,
20/1 Chetla Central RoadOpposite Chetla Boys School
Kolkata (W.B.) India Pin 700 026
Phone: +91-033-24491416 Fax: +91-033-24491416
E-mail: [email protected]
Corporate Off ice:
Mr. Pawan GaurSuri Niwas,
150, Guman PuraKota (Raj.) India Pin 324007
Mob.: +91-9300424152 Mob1.: +91-9300424153 E-mail: [email protected]
Corporate Off ice:
Smt. V. Dixit6B3, JNV Colony, Bikaner(Raj.) India
Mob.: +91-9413389414 E-mail: [email protected]
www.apins.co