Risk Control

Topics: Liability insurance Pages: 5 (1270 words) Published: February 11, 2013
Risk Control – ARM 55
Case Study McMaster University

Instructor: Z.Linda Papadopoulos, B.Sc., C.I.P., C.C.I.B., C.R.M.

Final Exam

Fun Risk Enterprise

April 12, 2011

a) Property

Theft Of Cash – Due to the enormous amount of cash receipts and due to affluent clientele that indulge in fancy rides and gourmet restaurants we are at risk for losses to occur.

LOSS PREVENTION: Move to cashless environment. Implement credit cards, interact and automated bracelets that can be linked to a credit card instead of having visitors use cash. LOSS REDUCTION: Monitor all cash stations. Have employees carry float and once they exceed the float limit have the float deposited into the safe SEPERATION: Make regular bank run deposits throughout the day so large amounts of cash are not stored on premises. DUPLICATION: Not applicable – cannot duplicate cash

Storage building – Our building could catch on fire due to the highly combustible type of storage materials. LOSS PREVENTION: Do not store highly combustible liquids inside of the building LOSS REDUCTION: Ensure adequate fire suppression equipment is located inside and is easily accessible SEPERATION: Divide the fuel and lubricant storage into three separate buildings, located on different sides of the park DUPLICATION: Not applicable

Solarium –this is a very expensive building and due to the combustibles stored beneath, and the glass construction of the building this could lead to spontaneous combustion resulting in an explosion. LOSS PREVENTION: Do not store fireworks in the solarium

LOSS REDUCTION: Implement a fire suppression system that has a temperature gauge, set to release once that temperature has been reached. SEPERATION: Divide the fireworks into two separate locations, or only store the least combustible fireworks in the solarium DUPLICATION: There are no current plans to build another solarium at this time.

Exotic Pets – due to extreme cost of these animals we could suffer a large property loss if something should happen to one of these pets. LOSS PREVENTION: Only import strong, young, healthy animals LOSS REDUCTION: Ensure animals are well taken care of. Proper feeding, maintenance and health checks will be recorded and monitored on a daily basis. Also, ensuring these animals with a pet insurer will help. SEPERATION: Not currently in our scope to separate the animals into different locations. DUPLICATION: We currently have an in house breeding process in place.

b) Personnel

Work Related Injury – Our Pyro technician could get burned while setting up for one of our spectacular shows. LOSS PREVENTION: Ensure hired technician is highly qualified and has had adequate training LOSS REDUCTION: Ensure technician wears safety gear when lighting the fireworks, including a fire retardant suit and fire resistive safety goggles. SEPERATION: Not applicable

DUPLICATION: Hire more than one technician.

Retirement – Our extremely rare Exotic Pet Wrangler may retire leaving our animals exposed to the care of commoners LOSS PREVENTION: Hire young Wranglers
LOSS REDUCTION: Ensure adequate vacation, personal days and a solid wage. Offer an incentive package to entice our Wranglers to retiree later in life (i.e. 40yrs of service equals an extra $15k per year in pension). SEPERATION: Not applicable

DUPLICATION: Always have an apprentice in training on board.

Resignation – Our Golf Pro may resign leaving us with thousands of booked lessons and nobody to teach those lessons LOSS PREVENTION: Ensure we have a long term contract in place with a heavy penalty should our Pro decide to leave. LOSS REDUCTION: Employ a Manager who could help placate our Pro. Alert us to any warning signs that our Pro is unhappy and work with her to find common ground. Adequate vacation time, recognition and a healthy salary will be necessary. SEPERATION: Not applicable

DUPLICATION: Always have an apprentice in training on board....
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