Page 66 - Petrosphere - Loss Control Management (LCM) Training Manual V 1.0

65 Module 6: Economics in Loss Control Loss Control Management (LCM)

Principle of Adequate Evidence/Information

“The timeliness of a manager’s decision making is directly related to the adequacy of information
he has upon which to act”.

“Providing management with an increased number of devices and techniques to aid decision
making will bring the application of loss control in general industry more in tune with the technological
advances of our space age.”

Example:
• Quantitative risk assessment to evaluate risk and determine potential economic loss should
undesired events occurred.

Principles of Dimensional Value

“The degree of management attention is directly related to the size of the problem”.

“We do not gain the management attention unless we present the costs of our losses in their true
magnitude of economic perspective.”

Example:

• When we combine the everyday costs involved with the inter-related disciplines of safety,
environmental health, fire and security, we possess a package of costs reduction potential of

unquestionable motivational dimension.

Summary

“The principles of economic application can be utilized to motivate increase management interest
and action in loss control program. They can be used individually, or in combination; but most important
of all, use them!”

Conclusion

“A comprehensive control program is aimed at elimination of problem of occupational health,
property protection, product safety, security, and any other area where unintended incident can occur and
detract from the company’s profitability.”

“Safety and loss control are important part of the executive suite. No longer have second-class
citizen, loss prevention and profit performance become synonymous.”

“Total loss control programming is sound business planning, the best of both worlds under one
roof.”

PETROSPHERE INC.
www.petrosphere.com.ph | info@petrosphere.com.ph