© 2000 International Risk Control America, Inc. Risk Management Presentation — 1 International Risk Control America IRCA

© 2000 International Risk Control America, Inc. Risk Management Presentation — 2 Risk Management Risk ControlRisk Financing Retention Financing External Financing Fire Security Safety Occupational Health Environmental Management Maintenance Quality Management

© 2000 International Risk Control America, Inc. Risk Management Presentation — 3 Risk Financing Retention Financing External Financing

© 2000 International Risk Control America, Inc. Risk Management Presentation — 4 Risk Control Fire Security Safety Occupational Health Environmental Management Maintenance Quality Management

© 2000 International Risk Control America, Inc. Risk Management Presentation — 5 Risk management goes beyond injury into loss.

© 2000 International Risk Control America, Inc. Risk Management Presentation — 6 DefinitionsDefinitions  Loss - avoidable waste of any resource  Risk - chance of loss  Control - compliance with standards or requirements  Safety - control of accidental loss  Occupational health - control of work-related illness  Hazard - a condition or practice with a potential for loss

© 2000 International Risk Control America, Inc. Risk Management Presentation — 7 DefinitionsDefinitions  Risk Analysis - assessment of the potential severity of loss along with the probability and exposure of a hazard  Risk Control - anything done to reduce loss from the business. It includes: 1. The elimination or reduction of loss exposures 2. The minimization of loss when loss- reducing events occur 3. The termination or avoidance of risk

© 2000 International Risk Control America, Inc. Risk Management Presentation — 8 DefinitionsDefinitions  Risk management - a managerial function, aimed at protecting the organization, its resources and profits against the adverse consequences of exposure to risk, by reducing the frequency of occurrence and the consequence of the exposure

© 2000 International Risk Control America, Inc. Risk Management Presentation — 9 Risk Control Reasons to apply Risk Management 1. Injuries/Health 2. Cost Benefits 3. Risk Aversion 4. Authoritative Reasons 5. Policy Based Decisions

© 2000 International Risk Control America, Inc. Risk Management Presentation — 10 Risk Analyses Evaluate Results Investigate Identify Hazards Risk Reduction Terminate Treat Transfer Implement and Manage Measure/Monitor Incident Change Occurs Risk Value Judgement Tolerate Acceptable Yes No Risk Assessment The Risk Management Process External Influences Labor Unions Societal Demands Regulatory Requirements Technology Workforce Changes Medical Research International Codes/Standards

© 2000 International Risk Control America, Inc. Risk Management Presentation — 11 External Influences Labor UnionsLabor Unions Societal DemandsSocietal Demands Regulatory RequirementsRegulatory Requirements TechnologyTechnology Workforce ChangesWorkforce Changes Medical ReserchMedical Reserch International Codes/StandardsInternational Codes/Standards

© 2000 International Risk Control America, Inc. Risk Management Presentation — 12 Risk Assessment  Baseline Risk Assessments  Issue Based Assessments  Continuous Risk Assessments

© 2000 International Risk Control America, Inc. Risk Management Presentation — 13 Risk Analyses Identify Hazards Risk Value Judgement Risk Assessment Process

© 2000 International Risk Control America, Inc. Risk Management Presentation — 14 Risk Reduction Process Risk Reduction Terminate Treat Transfer No Tolerate

© 2000 International Risk Control America, Inc. Risk Management Presentation — 15 Implemention Process Evaluate Results Investigate Implement and Manage Measure/Monitor Incident Change Occurs

© 2000 International Risk Control America, Inc. Risk Management Presentation — 16 Risk Analyses Evaluate Results Investigate Identify Hazards Risk Reduction Terminate Treat Transfer Implement and Manage Measure/Monitor Incident Change Occurs Risk Value Judgement Tolerate Acceptable Yes No Risk Assessment The Risk Management Process

© 2000 International Risk Control America, Inc. Risk Management Presentation — 17 The Risk Management System Should Include:  Every employee should receive proper job instructions prior to the start of their work activity.  Each employee has complete understanding of all rules. There should be an annual review and the rules enforced.  A standard task procedure has been developed for every critical task. The employees are trained in the procedures, they are updated and reviewed with each employee when changed, or at least annually.

© 2000 International Risk Control America, Inc. Risk Management Presentation — 18 The Risk Management System Should Include:  Inspections should be conducted as required, critical parts and activities monitored and acted upon. Any reported unsafe action or condition promptly responded to and followed up to assure correction.  Each employee is given proper job instruction with each new or different assignment.  Skill training is given and recorded to all operators of machinery and equipment.

© 2000 International Risk Control America, Inc. Risk Management Presentation — 19 The Risk Management System Should Include:  All employees are fitted for and provided all required protective equipment. 100% compliance is maintained.  All employees attend required group risk control meetings.  Every incident of injury, damage, or process loss is immediately investigated, reported and actions taken.  Compliance to all requirements and standards are maintained.