Hypothesis Identification Article Analysis

Essay by dasiasmommy September 2009

download word file, 2 pages 0.0

Computerized contingency planning can aid RMsA top priority for risk managers has always been to plan for the unexpected. Nevertheless, it is a difficult and time consuming process to try to piece together critical information to forecast possible events. As it relates to equipment losses, contingency planning is a challenge. Contingency planning methods are not designed to suit the financial needs of risk managers and they are arduous.

Insurance policy holders interact with risk managers at one point or another. Insurance is a necessity for policy holders and a potential risk for insurance underwriters. Customarily, risk managers have used the paper method of contingency planning, which is typically cataloging information regarding critical equipment. This method was used to organize the information in a manual containing information on what to do in the case of a significant loss. Since thousands of pages would be written and stored, this method is inefficient since the amount of paperwork involved is very large and it would be quite time consuming to locate the necessary information in a timely manner.

HypothesisAdvanced computer programming techniques and capabilities can be more suited for a risk managers' needs. Being proactive is very important for a risk manager to succeed, therefore, many risk managers would find a computerized contingency manual vital if it were designed for their needs. "With the advancement of computer technology and programming, there are, in fact, software contingency planning packages that help them develop a pre-emergency action plan and quantify and control their exposure to equipment-related risks" (Sutherland, 1993). It is believed that technology will help risk managers deal with critical situations more efficiently and effectively than the current paper method. "The tool would be worthwhile for risk managers if it could help calculate probabilities of maximum losses, help determine deductible levels and calculate...