Page 73 - Petrosphere - Loss Control Management (LCM) Training Manual V 1.0

72 Module 8: Management Control of Loss Loss Control Management (LCM)

Module 8: Management Control of Loss

Overview:

• Specific Professional Vocabulary
• Why Loss Control is Important to Managers

• Activities of Management Control

“The first duty of business is to survive and the guiding
principle of business economics is not the maximization of
profit- it is the avoidance of loss.”

Peter Drucker

Specific Professional Vocabulary
• Loss - avoidable waste of any resource

• Risk - chance of loss

• Hazard - a condition or practice with the potential for accidental loss
• Safety - control of accidental loss

• Loss Control - anything done to reduce loss from the pure risk of business.

• Loss Control Management - the application of professional management skills to the control of
loss from risk of business.

Management
Management is the process of coordinating all the resources & activities of an organization
through planning, leading, organizing & controlling in order to fulfill organizational objectives at the least

possible cost.

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