INTRODUCTION TO LOSS MANAGEMENT

1. INTRODUCTION TOLOSS MANAGEMENT “Set the scene” Definitions A few questions

2. DEFINITIONS(Bird and Germain, 1996) Accident: An undesired event that results in harm to people, damage to property, or loss to process (+ loss to environment; HSE). An accident results from contact with a substance or source of energy (chemical, mechanical, etc.) above the threshold limit of the body or structure.

3. DEFINITIONS(Bird and Germain, 1996) Incident: An undesired event which, under slightly different circumstances, could have resulted in a loss (people, property, process, environment)…or… An undesired event which could or does result in a loss (people, property, process, environment).

4. DEFINITIONS(Jones et al., JLPPI, 12 (1999) 59-67) Incident: A sudden work related accident or near miss. Accident: An unintended incident which results in injury to persons and/or damage to property, the environment or a third party. Near miss: An unintended incident which, under different circumstances, could have become an accident.

5. DEFINITIONS Hazard: A chemical or physical condition that has the potential for causing harm/damage to people, property, process or environment. Risk: A measure of economic loss or human injury in terms of both the incident frequency and the severity (consequences) of the loss or injury. RISK = FREQUENCY x SEVERITY