BWBB 1013 (A162) Group B

EXERCISE
Group No.: 9
Group Member: Shim Wei Ling (B16), Choo Yen Teng (B19), Ong Jing Wen (B
20)
Submission Date: 17/05/2017

1. Loss avoidance

Super Equipment stops to manufacture and sell the scaffolds and ladders that are used by
construction firms. If there is no production of the products, there will be no liability loss
exposure happens. The risk is avoided.

2. Loss prevention

Super Equipment can issue the safety use guidelines, instructions and precautions to every user
of scaffolds and ladders. For example, the guidelines should include that users are prohibited to
use scaffolds covered with snow, ice, or other slippery materials, except to remove these
substances.

3. Post-loss reduction

Super Equipment can do an investigation and inspection on the scaffolds and ladders that
provided to the construction firms once the company is receiving the notice of someone is
injured. When the company found the scaffolds or the ladders are defective, the company can
collect back the scaffolds and ladders to reduce the numbers of injured.

4. Risk transfer via insurance

Risk transfer via insurance is one of the risk management technique that can be used by Super
Equipment. Risk transfer via insurance is a special form of planned retention by which part or all
of given loss exposure is retained by Super Equipment. Super Equipment can buy an insurance
from an insurance company to insured the companys product liability exposures.

5. Risk transfer via contract

Risk transfer via contract is one of the risk management technique that can be used by Super
Equipment. Risk transfer via contract means that the undesirable risk that faced by Super
Equipment such as the scaffold or ladder that the company produce is defective and cause
someone injured, this risk can be transferred to the independent retailers when they buy the
product from the company via contract they sign.