NCJ Number
133472
Journal
Police Chief Volume: 58 Issue: 11 Dated: (November 1991) Pages: 19-21,23,25
Date Published
1991
Length
5 pages
Annotation
This article explains the nature of a risk management program in a police department and outlines the steps for planning and implementing such a program.
Abstract
Risk management is the process of minimizing the adverse effects of pure loss upon an organization. An effective risk management program in a police agency will yield a more efficient use of public funds and will decrease the overall costs of daily operations of a police department. There are five steps in the implementation of a risk management program. The first step is to identify loss exposures in five areas: property losses, personnel losses, loss of income, increased expenses, and liabilities to a third party. The second step is the evaluation of loss exposures that have been identified. This involves the determination of the dollar value of each loss and the frequency with which each type of loss is likely to occur. Step three is a review of the techniques for addressing loss exposures. Techniques can include the avoidance of risk exposure, loss reduction, loss prevention, the segregation of loss exposure, the provision of backup resources, and the contractual transfer of loss exposure to another party. The fourth step involves the selection and implementation of the most appropriate technique. The fifth step is to monitor the progress of the decisions made to determine if the intended effects are being achieved. The article concludes with an outline of the organizing tasks required to start a risk management program.