Dyman & Associates Projects, Risk Management: What are you willing to pay?
by Mainne King Dyman & Associates Risk Management ProjectsWinter
weather has taken its toll on both sides the US and Canadian border. One utility that has taken it in the chops
from all the ice and snow has been electric companies that provide services to
businesses and individuals. Now this
wasn't the only time that there have been electrical outages due to severe
weather. Power outages have become
rather routine when severe weather hits.
The question is, "How much mitigation do you want to invest in to
reduce the impact of outages?" See
it Here…
The above is
the theme from a Toronto Glob editorial, see the ice storm: Why you want the
lights to go out, sometimes in the piece they call attention to the fact that
you can't mitigate every risk. The costs
to do so would be too high. Thus, the focus
on risk management.
"What is risk? It is the odds of
suffering a loss in the future. It is a cost. And what about the reduction or
elimination of that risk? Also a cost. In deciding whether to pay the price,
utilities – and all of us – end up having to weigh three factors: the size of
the possible damage, the likelihood of its occurrence, and the price of
mitigation." Dyman
& Associates Risk Management Projects
Risk
management will become a greater part of the discussion as we move forward and
the warming climate starts to impact our communities in varying ways. This will be a good discussion for
communities to have. One way to reduce
risk is to disperse it in the entire community (whole community). If individuals are better prepared than the
costs for organizations can be lessened, and costs of single entity
preparedness reduced.
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Created on Dec 31st 1969 18:00. Viewed 0 times.