A thorough and thoughtful risk management plan is the commitment to prevent harm and is a pre-loss exercise. Insurance comes post-loss and pays for the damages if the risk were to occur. Residual risks are the inherent risks that remain after the implementation of the risk management plan. It is the basis of risk underwriting.

There are essentially FIVE (5) basic risk management principles: identification, analysis, control, financing, and claims management with objectives similar for industry, private, and government sectors. These areas are summarized below:

Reduce and Eliminate Harmful Threats.
Supports Efficient use of Resources.
Better Communication of Risk within Organization.
Reassures Stakeholders.
Support Continuity of Organization.

Governments, Financiers, and Insurance Companies have adopted performance benchmarks for risk management and underwriting especially were about the protection of Life, Environment, and Assets. These are guided by codes and standards relevant in different jurisdictions. Common codes and standards include BS, ASME, IEC, OSHAS, API, NFPA, ISO, IBC, etc.

Operational Risk Management for Safety and Security is a multidisciplinary service encompassing Life & Fire Safety Environmental & HSE-MS, Technical & Process Safety consulting, and contracting. Risk management is best embedded in the concept phase of any project by the Architects and Project Managers. They work with qualified specialists to ensure passive and active risk management philosophies that guide the deployed strategies in other phases.

This approach negates project cost variation while ensuring User and Legal Requirements by the Authority Having Jurisdiction are met in the facility design, construction, and operations. With these risks is brought to as low as reasonably practicable (ALARP), the residual risks are transferred to third parties. Insurance companies underwrite the residual risk. The gains in adopting a sound risk management plan pay for themselves in reduced premium over time. Other benefits include compliance, reputation, and business continuity. This case is too often missed by Project Managers.

With over 13 years serving the African region in this niche service, we at Safety Consultants and Solution Providers encourage Architects, Financiers, Project Managers, Insurance and Owners conscious especially this critical requirement especially if these scenarios apply