· Resources: Understanding Loss Control

     Loss Control is a disciplined process to identify and analyze exposures; and to take actions to prevent, reduce, retain, or transfer various levels of risk. Loss Control is a process of preventing losses.

     There are three basic steps in the Loss Control process. The first is to identify risks, the second is to control risks, and the third is to evaluate the risk management program and revise when necessary.

     There are several necessary pre-conditions to an effective risk management program. Some of these conditions include elected official support, employee support, effective organization, formal statement of policies, and good record keeping.

     Loss Control seeks to minimize and control the chance of loss by identifying and treating risks and exposures. Everything an entity owns or does can create the risk of loss.

     Courts continue to award ever increasing damages to plaintiffs who successfully sue public entities. Valuable assets (human, financial and capital) continue to be injured, lost or damaged.

     Effective Loss Control by a local entity is essential, especially as insurance premiums continue to rise, local government immunity is eroded, medical health care costs escalate, the public becomes more claims conscious and litigious, agencies begin to mandate certain Loss Control measures, and competition for scarce revenues increase.

     Loss Control can help by the following:
          · To protect the organization's assets.
          · To ensure a safe environment for employees and for members of the           public who come into contact with these employees as services are           provided.
          · To minimize the possible interruption of vital public services.
          · To safeguard that all exposures to financial loss are discovered and           treated.
          · To reduce the cost of accidents, including insurance premiums, through           effective safety programs and practices.
          · To reduce other financial losses by using efficient reduction procedures.

     Loss Control is extremely important. The following are the benefits:
          · Increased work productivity because of accident reduction.
          · Decreased cost of accidents.
          · Reduced loss, misuse, or theft of property.
          · Ensuring that all possible risks are discovered and treated.
          · Higher employee morale and productivity because of a safer work           environment.
          · Minimized cost through a sound combination of risk financing, retention,           transfer, control, avoidance, prevention and reduction techniques.