Which of the following are included in total risk management? 1. Saf

Which of the following are included in total risk management?

1. Safety
2. Fire prevention
3. Damage control
4. Insurance functions

Select the correct answer using the code given below.

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1, 2 and 3 only

3 and 4 only

1, 2 and 4 only

1, 2, 3 and 4

Answer is Right!

Answer is Wrong!

This question was previously asked in

UPSC CISF-AC-EXE – 2024

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The correct option is D) 1, 2, 3 and 4. Total risk management is a comprehensive process that includes identifying, assessing, controlling, and monitoring risks that could affect an organization’s ability to achieve its objectives. This encompasses a wide range of potential threats, including safety hazards, property damage (like fire), operational disruptions, and financial losses.

A holistic approach to risk management considers all potential sources of risk. Safety and fire prevention are crucial aspects of preventing incidents. Damage control deals with mitigating the impact of incidents when they occur. Insurance functions are a key financial tool for transferring the risk of loss. All these components contribute to managing the total risk exposure of an entity.

Total risk management frameworks, such as Enterprise Risk Management (ERM), aim to integrate risk assessment and management across all levels and functions of an organization. It goes beyond traditional insurable risks to include strategic, operational, financial, and compliance risks. Therefore, safety, fire prevention, damage control, and insurance are all integral parts of a comprehensive risk management strategy.

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