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Don't Lose Control!
April 6, 2012
April 6, 2012
By: Shannon Rule
How many safety incidents did your company record last year? How much money did those incidents cost the company's profit? Perhaps your company's loss control program needs to be re-evaluated. Are you familiar with loss control? Loss control is anything done to reduce loss from the risks of business, which includes:
- the prevention or reduction of loss exposures
- the minimizing of loss when loss producing events occur
- the termination or avoidance of risk
Most people think that loss control deals directly with the bottom line. However, loss control goes far beyond protecting your company's assets by preventing theft and focusing on profit. Loss control is also concerned with people, equipment, materials, and environment.
Loss can happen when your employees are injured and unable to work. It can also happen when your equipment malfunctions and is in need of repair, causing production to stall, resulting in a profit loss. Loss happens when your materials are not up-to-quality resulting in an increase in waste. This can cut right into the bottom line. Last, but not least, environment can cause loss. The environment deals with not only nature, but the employer's premises and other locations where employees are engaged in work-related activities or are present as a condition of their employment. If an accident occurred that made the building unstable, the company would definitely suffer a loss.
How do you manage the risk in your facility?
- Identify all loss exposures
- Evaluate the risk in each exposure
- This includes the severity, frequency, and probability of an incident.
- Develop a plan
- What do you do when a risk is found?
- Implement the plan
- Put your ideas into action.
- Monitor the system
- Does the plan work? Should any changes be made to the plan?
OSHA recommends their Four-Point Workplace Program when developing your loss control strategy.
OSHA can and will request documentation, through subpoena if necessary, of loss control inspections in the event that your company has an incident. Keeping up-to-date on these inspections may reduce further loss to your company by reducing violation fines.
Loss control is more than preventing accidents. It is the managerial practice of protecting organizational assets (people, equipment, inventory, property, environment, and reputation) thereby enhancing the business mission (profit or service).