Risk Consulting Services

Risk Management Services as an offering is along with insurance products and solutions is relatively new to the Indian General Insurance industry. Risk Management has assumed importance with entry of private general insurance companies in the Indian market. Our company has been one of the pioneers in offering this service in the Indian Insurance Market to our Corporate Clientele.

The word ‘management’ can be defined in terms of organizing of activities and controlling the use of resources in such a manner as to achieve some desired objective. For an Industrial or commercial firm the objective may be to maximize profits, to increase revenue, to increase net worth or combination of different objectives.

Risk Management as a Subject concerned with the planning, arranging and controlling of activities and resources in order to minimize the impact of uncertain events. Risks arising out of uncertainty can be classified as production risks, marketing & distribution risks, financial risks, personnel risks and environmental risks.

Several methods are used for handling of risks.

Avoidance – It is the most drastic way of handling of risks. It totally restricts to go by risk having certain activities which are considered to be ‘risk prone’. For instance, if a factory uses some flammable substance for manufacturing of a product, one could think of not producing that product at all, so that the risk of fire is avoided.

Risk Reduction – It covers all methods employed to reduce either the probability of loss producing events occurring, or potential size of losses that do occur. This is a more positive approach of looking at risks. For instance, if a factory has a spray painting section using flammable paints and thinners, it could look at switching to powder coating.

Risk Retention – Once the risks are identified and the costs of potential events are ascertained, the next stage is how to treat such risks. One option is to keep the risk to one self, which is to pay for them out of one’s own resources when they occur. This is advised where the impact of risks are predictably small, measured accurately and do not threaten the business.

Transfer – Alternative way for reduction of risk is to transfer the activities which creates the risks on to someone else instead of doing it oneself, for e.g. Subcontracting of activities involving handling of highly flammable materials to third parties. However, the most important and practical form of risk transfer is ‘insurance’, whereby a professional risk carrier such as a Non-Life insurer is requested to carry the residual risk at a consideration, called the premium

At HDFC ERGO, whereas our underwriters primarily focus on “Risk Transfer”, our engineers with our Risk Consulting Services arm complement our risk transfer services by “Risk Reduction” – offering advisory services for Identifying, quantifying and reducing risks whereby the costs of risk transfer or the insurance premium is minimized.

We understand customer’s practical and financial limitations while recommending preventive measures. Our recommendations do not indulge in theoretical domain. Cost benefit analysis of recommendations is always presented for clients to take informed decisions on implementation.

Risk Consulting Services

We have dedicated risk engineers from various engineering disciplines stationed various locations in India. Our Risk Engineers have extensive experience in different lines of businesses and are trained in the latest risk management techniques by institutions in India and abroad

Some of the global

general insurance companieswho currently do not have presence in India have tied up with us to offer Risk Engineering Services to their clients in India. Our Risk Engineering Services are compliant with recognized standards like National Fire Protection Association (US), Fire Protection Association (UK), Tariff Advisory Committee (TAC), Oil industry Safety directorate (OISD), Bureau of Indian Standard (BSI) etc.

 

We have capabilities across a wide spectrum of industries such as:

• Automobile & Ancillaries
• Engineering Goods
• BPO / IT industries / Call Centers
• Cement
• Chemical
• Petrochemicals
• Steel and allied industries
• Pharmaceuticals
• Beverages
• Food Processing
• Textiles
• Paper
• Power Plants
• Sugar Plants

Our services are based on an interactive approach – we work closely with our clients’ engineers, safety officers and finance/accounts officers to give a whole spectrum approach:

• Site visit.
• Interaction with on site team
• Information collection
• On field recommendations and discussions
• Arriving on common conclusion
• Submission of recommendations to client in the form of ‘Risk Survey Report’ (RSR)
• Feedback on report from client
• Self appraisal based on client feedback