Financial assessment of potential damages on one hand and budget costs of prevention measures on the other hand are used to ensure rigor and coherence in the evaluation.
Risk managers can then find a balance between:
- possible minimization of consequences for potential losses
and
- costs of risk reduction measures
taking into account other corporate priorities.
For instance:
- without firewall, a normal loss expectancy may involve the loss of the whole building,
- after erection of a firewall, the normal loss expectancy may be limited to a part of the building.
Key factors that can support the decision may include various topics, such as: |
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Preventing Fire is ensuring the Fire Triangle Balance: Energy Control: Electricity, Smoking, Hot Work, Sprinklers, ... Oxygen Control: Extinguishers, ... |