Page 18 - Petrosphere - Loss Control Management (LCM) Training Manual V 1.0

17 Module 1: History and Philosophy of Loss Control Loss Control Management (LCM)

Importance of Loss Control

• Managers/Supervisors – responsible for the safety & health of others, i.e., Accountabilities.

• Managing Safety – provides significant opportunity for managing costs.

• Safety/loss control management – provides an operational strategies to improve overall
management.

Generally, the better a management’s analysis of cost, understanding of the human problems
in production, and; consciousness of public relations, is likely to be more thorough with its accident
prevention program.

Philosophy of Loss Control Management

A sound loss control programs aim to
eliminate problems of:
• occupational health,
• property damage,
• product safety,
• security, and

• any other areas where an
unintended incident can occur
and detract the organization’s
profitability.

Principles of Loss Control Management

1. The Principle of Resistance To Change – the greater the departure of any planned change
from the accepted ways of the past, the greater the potential resistance on the part of the people
involved.
2. The Principle of Definition – a logical and proper decision can be made only when the basic or
real problem is first defined.

3. The Principle of Reciprocated Interest – people tend to be motivated to accomplish results you
want to the extent that you show interest in the results they want to achieve.
4. The Principle of the Critical Few – in any group or array, a small number of items will tend to
give rise to the largest proportion of results.
5. The Principle of Recognition – motivation to accomplish results tends to increase as people are
given recognition for their contribution to those results.”

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